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Exercise 7-64 (Algorithmic) Amortization of Intangibles ondary 1, 2018, Boulder Investments inc acquired achitatea Burger Doodle restaurant Holder paid 5159, 500 for a 10 ur
Exercise 7-64 (Algorithmic) Amortization of Intangibles ondary 1, 2018, Boulder Investments inc acquired achitatea Burger Doodle restaurant Holder paid 5159, 500 for a 10 ur franchion and intures organit 12.000 Required 1. Prepare the matentry to record the cash payment for the franchise fou and the organization costs 2019 Jan 1 (Record purchase of franch) 2019 Jan 1 (Record organizational costs) 2. Prepare the journal entry to record the annual amortization expenses at the end of the first year 2019 Dec 31 (Record amortization of franchise) Exercise 7.58 (Algorithmic) Disposal offset Perfect Auto Rentals sold one of its cars on January 1, 2019. Perfect had acquired the car on lonuary 1, 2017 for $13,500. At acquisition Perfect assume that the car would have an estimated life of 3 years and residual valor of 33.000. Assume that perfect has recorded straight line depreciation expense for 2017 and 2016 Requiredi Prepare the sountry to record the sale of the car assuming the car sold for $6.500 (b) 34,000 6700 sh. The company recorded the car as equipment. If he entry is Veged, leave the answer boxes and Record sale of car acord sale of car III Records of Problem 7-70A (Algorithmic) Depreciation Methods Hansen Supermarkets purchased a radio frequency Identification (RFID) som for one of its stores at cost of $150,000. Han er determined that the system has an expected esterno 50,000,000 items schoned) and an expected roudon value of 56 000 Required: 1. Determine the amount of depreciation expense for the first and second years of the system's fe using the a Straight-line method. Round your awer to the nearest whole doll, and use the rounded amount for subsequent calculations Depreciation expenses per year b. Double-decoring-balance methods Round your answers to the nearest whole dollar and do not round intermediate calculation) Depreciation Expense Year 1 Year 2 2. In the number of items scanned the first and second years were 7,200,000 and 6,150,000, respectively compute the amount of depreciation expense for the first and second years of the item's life using the units of production depreciation method. Round your answers to the nearest whole dollar and do not round intermediate calculation Depreciation Expense Yeart Year 2 3. Compute the book values for all three depreciation methods as of the end of the first and second years of the system's life Year 1 Year 2 Straight-line method Double-declining balance method oll Units of production method
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