Item4

25

points

PrintItem 4

Kane Biotech was preparing the annual financial statements and, as part of the year-end procedures, assessed the assets and prepared the following alphabetized schedule based on adjusted values at December 31, 2023: (Do not round intermediate calculations. Round final answers to nearest whole dollar.)

Asset Date of Purchase Deprec. Method* Cost Residual Value Useful Life Accum. Deprec. Recoverable Amount

Equipment May 1/18 Units $ 56,000 $ 6,590 8,100 units $ 31,110 $ 9,590

Furniture Jun. 28/18 DDB 23,000 3,100 8 yrs 19,079 4,250

Land Apr. 5/18 N/A 96,000 N/A N/A N/A 112,800

Office building Apr. 5/18 SL 99,000 26,900 15 yrs 32,900 63,500

Warehouse Apr. 5/18 SL 71,500 21,000 20 yrs 23,938 56,100

*DDB = Double-declining-balance; SL = Straight-line; Units = Units-of-production; N/A = Not applicable

Required:

1. Record any impairment losses at December 31, 2023. Assume Kane Biotech has recorded no impairment losses in previous years.

2. Record depreciation for each asset at December 31, 2024. Assume that there was no change in the residual values or useful lives regardless of any impairment losses that might have occurred. The equipment produced 2,350 units during 2024.