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KISS, the 1970s makeup wearing, three-chord hard rock band is making a comeback in 2019. They are in the process of touring over 200 venues
- KISS, the 1970s makeup wearing, three-chord hard rock band is making a comeback in 2019. They are in the process of touring over 200 venues playing a whole new set of songs and have asked you to help them with their accounting.
Please provide the computation and required journal entry for each of the following assets:
- A new Kenworth semi-truck painted with the KISS logo cost $250,000 with a salvage value of $25,000. It has a 10-year useful life and an estimate of 400,000 miles. Actual miles driven in 2019 totaled 128,750 miles. Use the mileage method (units of production) to depreciate the truck in 2019.
- A $185,000 new touring speaker system with a three-year useful life was purchased. It has a salvage value $5,000. Please use the straight-line depreciation method for 2019.
- After computing the depreciation on part b.), Gene Simmons, the bass player and band business manager, called and asked you to redo part b.) using the double-declining balance method for 2019.
- Finally, the band shared with you their new idea. They purchased the Justin Bieber songbook for $1,500,000! Every song the Biebs composed and recorded is now owned by KISS! The songbook is an intangible asset with an estimated useful life of 20 years. Please compute the amortization expense for 2019 assuming no salvage value.
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