Need help with questions
1. 3B: Show how these assets and any related expenses should be reported on the balance sheet and income statement for the current year.
question 2: M9-13 Computing and Evaluating the Fixed Asset Turnover Ratio [LO 9-7]
Question 3: What should be the book value of (a) the land and (b) the building at the end of year 2?
41 E9-12 Computing and Reporting the Acquisition and Amortization of Three Different Intangible Assets [LO 9-6] 0.55 points Bluestone Company had three intangible assets at the end of the current year: a. A patent purchased this year from Miller Co. on January 1 for a cash cost of $1,600. When purchased, the patent had an estimated life of 8 years. b. A trademark was registered with the federal government for $10,000. Management estimated that the trademark could be worth as much as $240,000 because it has an indefinite life. C. Computer licensing rights were purchased this year on January 1 for $42,000. The rights are expected to have a six-year useful life to the company. Required: 1. Compute the acquisition cost of each intangible asset. 2. Compute the amortization of each intangible for the current year ended December 31. 3. Show how these assets and any related expenses should be reported on the balance sheet and income statement for the current year. Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Req 3A Req 3B Show how these assets and any related expenses should be reported on the balance sheet for the current year. (Negative amounts should be indicated by a minus sign.) BLUESTONE COMPANY Balance sheet (partial) At December 31 Intangibles: Prepaid Rent x $ Accumulated Depreciation x $ Utilities Expense x $ Income Tax Payable X $ (1,130) X (1,170) X (8,300) X (320) X 36 M9-13 Computing and Evaluating the Fixed Asset Turnover Ratio (LO 9-7] 0.55 points The following information was reported by Amuse Yourself Parks (AYP): Net fixed assets (beginning of year) Net fixed assets (end of year) Net sales for the year Net income for the year $9, 420,000 9,220,000 4,287,200 1,750,000 Compute the company's fixed asset turnover ratio for the year. Answer is complete but not entirely correct. Fixed Asset Turnover Ratio Numerator Net Sales 4,287,200 0.46 Denominator Average Net Fixed Assets x 9,420,000 39 Part 2 of 2 Required information E9-2 Computing and Recording a Basket Purchase and Straight-Line Depreciation (LO 9-2, LO 9-3] [The following information applies to the questions displayed below.) 0.55 points Bridge City Consulting bought a building and the land on which it is located for $120,000 cash. The land is estimated to represent 70 percent of the purchase price. The company paid $10,000 for building renovations before it was ready for use. E9-2 Part 3 and 4 3. Compute straight-line depreciation on the building at the end of one year, assuming an estimated 10-year useful life and a $13,000 estimated residual value. (Do not round intermediate calculations.) 4. What should be the book value of (a) the land and (b) the building at the end of year 2? Answer is complete but not entirely correct. 3 $ 8,100 X Straight-Line Depreciation Land 4(a) 4(b) $ 84,000 $ 74,000 Building
