Depreciation, amortization, and depletion

Part 1. Calculate depreciation in the following cases. 1. La Rosa del Monte has a moving truck that does the big moves in the Miami area and at the end of the year has a balance of $ 88,250 with accumulated depreciation of $ 12,230. He also has a small truck that he uses in the Orlando area for $ 43,760 with accumulated depreciation of $ 7,120. a. Determine what the depreciation is for each truck using the depreciation by units of activity method. Accumulated Truck Cost Estimated Estimated depreciation at Miles used in residual value. useful lifetime. the beginning the year. of the year Big Truck $88,250 $17,000 230,000 miles $12,230 32,000 Small Truck 43,760 6,500 280,000 miles 7,120 27,300 2. A gamer computer costs $ 3,850 with a residual of 800 and an estimated 5-year lifespan. a. Calculate annual depreciation using the straight-line depreciation method. b. Make wage entries. 3. A refrigerator in a cafeteria with a shelf life of 8 years cost $ 5,250 and has no residual. a. Calculate depreciation using the straight-line depreciation method and the declining method. b. Make the wage entries for each depreciation method 4. A sewing machine in a textile factory was purchased for $ 223,000, has an estimated residual of $ 22,000 and a useful life of 38,000 hours. It was used in the year for 4, 200 hours. 3. Calculate depreciation for the year using the unit-produced depreciation method, depreciable cost, and depreciation rate. Part 2. Calculate amortization and depletion for each transaction. 1. A gold garment production company acquired the rights to a mine for $ 520,000,000. At the mine, there are an estimated 150,000,000 tons of gold. The amount of 50,000 tons was sold in the year. a. Calculate the depletion rate and depletion expense for the year. b. You must deliver the steps of how you got to the result. 2. A fast food business acquired the copyright to a recipe book for $ 80,000 with a useful life of 15 years. a. Calculate the amortization. You must present the calculation made. 3. A company pays a patent for $ 98,000 with a useful life of 12 years. a. Calculate the amortization. You must present the calculation made