On January 1, 2021, Canseco Plumbing Fixtures purchased equipment for $62,000. Residual value at the end of an estimated 4 year service life is expected to be $34,000. The company expects the equipment to operate for 18,000 hours. Required: a. Calculate depreciation expense for 2021 and 2022 using sum-of-the-years'-digits assuming the equipment was purchased on January 1, 2021. b. Calculate depreciation expense for 2021 and 2022 using sum-of-the-years-digits assuming the equipment was purchased on March 31, 2021. Complete this question by entering your answers in the tabs below. Required A Required B Calculate depreciation expense for 2021 and 2022 using sum-of-the-years'-digits assuming the equipment was purchased on January 1, 2021. Sum-of-the-years' digits depreciation Depreciable Base Rate per Year = Depreciation Expense 2021 2022 = Complete this question by entering your answers in the tabs below. Required A Required B Calculate depreciation expense for 2021 and 2022 using sum-of-the-years'-digits assuming the equipment was purchased on March 31, 2021. Sum-of-the-years' digits depreciation Depreciable Rate per Base Year Fraction of Year Depreciation Expense X = - 4/1/2021 through 12/31/2021 Total depreciation expense - 2021 1/1/2022 through 3/31/2022 4/1/2022 through 12/31/2022 Total depreciation expense - 2022 II X X X = X II ! Required information [The following information applies to the questions displayed below.] On January 1, 2021, the Allegheny Corporation purchased equipment for $151,000. The estimated service life of the equipment is 10 years and the estimated residual value is $8,000. The equipment is expected to produce 232,000 units during its life. Required: Calculate depreciation for 2021 and 2022 using each of the following methods. 3. Assume instead the equipment was purchased on October 1, 2021. Calculate depreciation for 2021 and 2022 using each of the two methods. Partial-year depreciation is calculated based on the number of months the asset is in service. (Do not round intermediate answers and round your answers to the nearest whole dollar amount.) 2021 2022 Sum-of-the-years' digits One hundred fifty percent declining balance ! Required information [The following information applies to the questions displayed below.] On January 1, 2021, the Allegheny Corporation purchased equipment for $151,000. The estimated service life of the equipment is 10 years and the estimated residual value is $8,000. The equipment is expected to produce 232,000 units during its life. Required: Calculate depreciation for 2021 and 2022 using each of the following methods. 2. One hundred fifty percent declining balance. (Round final answers to the nearest whole dollar amount.) Year Depreciation expense 2021 2022 Janes Company provided the following information on intangible assets: a. A patent was purchased from the Lou Company for $1,500,000 on January 1, 2019. Janes estimated the remaining useful life of the patent to be 10 years. The patent was carried on Lou's accounting records at a net book value of $510,000 when Lou sold it to Janes. b. During 2021, a franchise was purchased from the Rink Company for $660,000. The contractual life of the franchise is 10 years and Janes records a full year of amortization in the year of purchase. C. Janes incurred research and development costs in 2021 as follows: Materials and supplies Personnel Indirect costs Total $156,000 196,000 76,000 $ 428,000 d. Effective January 1, 2021, based on new events that have occurred, Janes estimates that the remaining life of the patent purchased from Lou is only five more years. Required: 1. Prepare the entries necessary for years 2019 through 2021 to reflect the above information. 2. Prepare a schedule showing the intangible asset section of Janes's December 31, 2021, balance sheet. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare a schedule showing the intangible asset section of Janes's December 31, 2021, balance sheet. Partial Balance Sheet December 31, 2021 Intangible assets: Patent 150,000 66,000 Franchise Total intangibles $ 216,000
