Identify each of the following long-term operational assets as either tangible (T) or intangible (I).

a.

Pizza oven

(Click to select)TI

b.

Land

(Click to select)IT

c.

Franchise

(Click to select)IT

d.

Filing cabinet

(Click to select)IT

e.

Copyright

(Click to select)TI

f.

Silver mine

(Click to select)TI

g.

Office building

(Click to select)IT

h.

Drill press

(Click to select)TI

i.

Patent

(Click to select)TI

j.

Oil well

(Click to select)IT

k.

Desk

(Click to select)IT

l.

Goodwill

(Click to select)IT

[The following information applies to the questions displayed below.]

At the beginning of 2009, Expert Manufacturing purchased a new computerized drill press for $65,000. It is expected to have a five-year life and a $5,000 salvage value.

3.

value: 1.11 points

Required information

Requirement 1:

Compute the depreciation for each of the five years, assuming that the company uses (Omit the "$" sign in your response.)

(a)	Straight-line depreciation.

Straight-line depreciation

$ per year

(b)	Double-declining-balance depreciation.

	Depreciation
Year 1	$
Year 2
Year 3
Year 4
Year 5

References

eBook & Resources

WorksheetDifficulty: EasyLearning Objective: 06-3

Check my work

4.

value: 1.11 points

Required information

Requirement 2:

Record the purchase of the drill press and the depreciation expense for the first year under the straight-line and double-declining-balance methods in the given financial statement model: (Leave no cells blank - be certain to enter "0" wherever required. In the Cash Flow column, use the initials OA to designate operating activity, IA for investing activity, FA for financing activity and NA for no affect. Negative amounts should be indicated by a minus sign. Omit the "$" sign in your response.)

Expert Manufacturing Statements Model

Balance Sheet

Income Statement

Stmt. of Cash Flows

Assets

S. Equity

Rev

Exp.

=

Net Inc.

Cash

+

D. Press

Acc. Depr

=

Ret. Ear.

+

=

=

(Click to select)OANAIAFA

Straight-Line

+

=

=

(Click to select)IANAOAFA

DDB

+

=

=

(Click to select)NAOAIAFA