On July 1, 2012 ABC Co purchased a copyright for $100,000. Useful life of 10 years.

Record amortization expense for 2012:

PPE:

Prestige Co purchased a dump truck for $80,000.

sales taxes were $7,000

delivery charge $500

company logo painted on the truck $2,000

annual license fee for the truck $250

initial safety testing $300

insurance expense for the first 2 years of $2,500

insurance during transit of $200

Which of these costs are included in the cost of the dump truck?

Machinery was purchased for $350,000, has an estimated salvage value of $20,000, and an estimated useful life of 6 years.

1. If the machinery was purchased Jan. 1, 2012, what is the amount of depreciation for 2012 using the straight-line method?

2. If the machinery was purchased April 1, 2012, what is the amount of depreciation for 2012 using the straight-line method?

XYZ Co has equipment that originally cost $320,000, 7 year life, estimated salvage value of $40,000. Accumulated depreciation balance of $120,000 on Dec. 31, 2012.

Use straight-line method. For each scenario below: Calculate Book Value. Calculate gain or loss. Determine the journal entry to record the sale.

1. If XYZ sold the equipment for $100,000 on July 1, 2013:

2. If XYZ sold the equipment for $300,000 on July 1, 2013:

3. If XYZ determined that the equipment was worthless & retired the asset on July 1, 2013: