Lake Company, organized in 2020, has the following transactions related to intangible assets in that year. Lake Company uses the calendar year for financial reporting.

1/1/2020	Purchased patent (9-year life)	$540,000
4/1/2020	Purchased trademarks (indefinite life)	240,000
7/1/2020	Purchased copyright on artwork; expiration date 7/1/2035	345,000
12/31/2020	Research and development costs	217,000

Enter your answers below in whole dollars without a $ sign (e.g., xxx).

1. How much expense will Lake Company recognize in 2020 due to the purchased patent?
2. How much expense will Lake Company recognize in 2020 due to the purchased trademarks?
3. How much expense will Lake Company recognize in 2020 due to the purchased copyright?
4. How much expense will Lake Company recognize in 2020 due to its Research and development?
5. Based on the above, what is the net bookvalue of total intangible assets that Lake Company's balance sheet will show on Dec. 31, 2020?

The Lark Company purchases a warehouse on December 28, 2020, for $150,000 (which includes all capitalizable costs). They put the warehouse into service on January 1, 2021, assigning it a useful life of 28 years and a salvage value of $10,000. Enter your answers below in whole dollars without a $ sign (e.g., xxx).

1. Calculate the depreciable cost of the warehouse.
2. Calculate the annual depreciation expense that Lark must recognize for the warehouse over the next 28 years.
3. Calculate the net book value of the warehouse as of December 31, 2025 (after appropriate adjusting journal entry).
4. As of December 31, 2025 (after appropriate adjusting journal entry), how much total additional depreciation expense should be recognized over the remaining useful life of the warehouse?

Scrimshander, Inc. is a shipping company, transporting goods using cargo ships. On January 1, 2017, the company purchases and puts into service a cargo ship costing $10,000,000. The expected useful life of the ship is 25 years, and the salvage value is $800,000. Enter your answers below in whole dollar amounts without a $ sign.

1. Calculate the annual depreciation expense that Scrimshander must recognize on the cargo ship over the next 25 years.
2. Calculate the net book value of the cargo ship as of December 31, 2020.
3. Calculate the net book value of the cargo ship as of December 31, 2041.
4. Assume that Scrimshander continues using this cargo ship throughout 2042. How much depreciation expense should Scrimshander recognize for that year?

QUESTION 3

Scrimshander, Inc. is a shipping company, transporting goods using cargo ships. On January 1, 2017, the company purchases and puts into service a cargo ship costing $10,000,000. The expected useful life of the ship is 25 years, and the salvage value is $800,000. Enter your answers below in whole dollar amounts without a $ sign.

1. Calculate the annual depreciation expense that Scrimshander must recognize on the cargo ship over the next 25 years.
2. Calculate the net book value of the cargo ship as of December 31, 2020.
3. Calculate the net book value of the cargo ship as of December 31, 2041.
4. Assume that Scrimshander continues using this cargo ship throughout 2042. How much depreciation expense should Scrimshander recognize for that year?

Cullumber Company owns delivery equipment that cost $53,800 and has accumulated depreciation of $27,300 as of July 30, 2020. On that date, Cullumber disposes of this equipment. For parts b - d below, enter D for debit or C for credit in the first box and the amount in the second box.

1. What is the net book value of the equipment on July 30, 2020?
2. Assume Cullumber scraps the equipment as having no value on July 30. What is the gain or loss, if any, that Cullumber should recognize?
3. Assume Cullumber sells the equipment for $37,200 cash on July 30. What is the gain or loss, if any, that Cullumber should recognize?
4. Assume Cullumber sells the equipment for $18,000 cash on July 30. What is the gain or loss, if any, that Cullumber should recognize?