My question is P8-4A
a. c. Calculate the depreciation expense for each year of the machine's useful life under each of the fol. lowing depreciation methods: Straight-line. b. Double-declining balance. Units-of-production. Assume annual production in cuttings of 200,000; 350,000; 260,000; and 190,000. L01, 2, 3 P8-4A. Accounting for Property, Plant and Equipment Basin Corporation had the following transac- tions related to its delivery truck: Year 1 Jan. 5 Purchased for $14,300 cash a new truck with an estimated useful life of four years and a salvage value of $2,300. Feb. 20 Installed a new set of side-view mirrors at a cost of $68 cash. June 9 Paid $285 for an engine tune-up, wheel balancing, and a periodic chassis lubrication. Aug. 2 Paid a $250 repair bill for the uninsured portion of damages to the truck caused by Basin's own driver. Dec. 31 Recorded depreciation on the truck for the year. Year 2 May 1 Installed a set of parts bins in the truck at a cost of $800 cash. This expenditure was not expected to increase the salvage value of the truck. Dec. 31 Recorded depreciation on the truck for the year. Year 3 Dec. 31 Recorded depreciation on the truck for the year. Basin's depreciation policies include (1) using straight-line depreciation, (2) recording deprecia- tion to the nearest whole month, and (3) expensing all truck expenditures of $75 or less. REQUIRED Based on these transactions: Cambridge Business Publishers rs Chapter 8 Property, Pla ovements a. lant and rice was Calculate the depreciation expense for each of the three years. b. Calculate the book value of the delivery truck at the end of year 3. P8-5A. Disposal of Property, Plant and Equipment Citano Company has a used exec that originally cost $800,000. Straight-line depreciation on the plane has bee years, with an $80,000 expected salvage value at the end of its estimated eight-y last depreciation entry was made at the end of the sixth year. Eight months in Citano disposes of the plane. 20,000 -40,000 44,000 96,000 REQUIRED Calculate: a. 00,000 C. uipment, e. e values Depreciation expense for the eight months in Year 7 to the date of dispos b. The book value of the plane at the date of the disposal. The gain or loss on the sale of the plane for $215,000 cash. d. The gain or loss on the sale of the plane for $195,000 cash. The gain or loss on the destruction of the plane in a fire. Citano expects settlement. Accounting for Intangible Assets Berdahl Company owns several retail ou it expanded operations and entered into the following transactions: Mar. 1 Paid $45,000 to obtain an exclusive area franchise for five years t perfume. $38.000 to LogoLab, Inc., for designing a trademark for a new lintribute nationally. Berdahl will use the tra P8-6A. Value 00 a. c. Calculate the depreciation expense for each year of the machine's useful life under each of the fol. lowing depreciation methods: Straight-line. b. Double-declining balance. Units-of-production. Assume annual production in cuttings of 200,000; 350,000; 260,000; and 190,000. L01, 2, 3 P8-4A. Accounting for Property, Plant and Equipment Basin Corporation had the following transac- tions related to its delivery truck: Year 1 Jan. 5 Purchased for $14,300 cash a new truck with an estimated useful life of four years and a salvage value of $2,300. Feb. 20 Installed a new set of side-view mirrors at a cost of $68 cash. June 9 Paid $285 for an engine tune-up, wheel balancing, and a periodic chassis lubrication. Aug. 2 Paid a $250 repair bill for the uninsured portion of damages to the truck caused by Basin's own driver. Dec. 31 Recorded depreciation on the truck for the year. Year 2 May 1 Installed a set of parts bins in the truck at a cost of $800 cash. This expenditure was not expected to increase the salvage value of the truck. Dec. 31 Recorded depreciation on the truck for the year. Year 3 Dec. 31 Recorded depreciation on the truck for the year. Basin's depreciation policies include (1) using straight-line depreciation, (2) recording deprecia- tion to the nearest whole month, and (3) expensing all truck expenditures of $75 or less. REQUIRED Based on these transactions: Cambridge Business Publishers rs Chapter 8 Property, Pla ovements a. lant and rice was Calculate the depreciation expense for each of the three years. b. Calculate the book value of the delivery truck at the end of year 3. P8-5A. Disposal of Property, Plant and Equipment Citano Company has a used exec that originally cost $800,000. Straight-line depreciation on the plane has bee years, with an $80,000 expected salvage value at the end of its estimated eight-y last depreciation entry was made at the end of the sixth year. Eight months in Citano disposes of the plane. 20,000 -40,000 44,000 96,000 REQUIRED Calculate: a. 00,000 C. uipment, e. e values Depreciation expense for the eight months in Year 7 to the date of dispos b. The book value of the plane at the date of the disposal. The gain or loss on the sale of the plane for $215,000 cash. d. The gain or loss on the sale of the plane for $195,000 cash. The gain or loss on the destruction of the plane in a fire. Citano expects settlement. Accounting for Intangible Assets Berdahl Company owns several retail ou it expanded operations and entered into the following transactions: Mar. 1 Paid $45,000 to obtain an exclusive area franchise for five years t perfume. $38.000 to LogoLab, Inc., for designing a trademark for a new lintribute nationally. Berdahl will use the tra P8-6A. Value 00
