On July 1, 2012, Okin company purchased equipment for 205,000 the estimated useful life was 10 years and the expected salvage value was 2500. Straight line depreciation is used. On July 1, 2016, economic factors cause the market value of the equipment to decrease to $90,000. On this date, Okin evaluates if the equipment is impaired and estimates future cash flows relating to the use and disposal of the equipment to be $125,000. 3. Is the equipment impaired at July 1, 20167 b. If the equipment is impaired at July 1, 2016, calculate the amount of the impairment loss. impairment loss c. If the equipment is impaired at july 1, 2016, prepare the journal entry to record the impairment los General Journal Debit Credit To record impairment loss on equipment Depreciation Methods A delivery truck costing 522,000 is expected to have a $1,500 salvage value at the end of its useful life of four years or 125,000 miles. Assume that the truck was purchased on January 2. Calculate the depreciation expense for the second year using each of the following depreciation methods: (a) straight-line. (b) double-declining balance, and (c) units-of-production (Assume that the truck was driven 28,000 miles in the second year.) Round all answers to the nearest dollar Straight line 1. Double decling balance units of production 5 Amortization Expense For each of the following unrelated situations, calculate the annual amortization expense and prepare a journal entry to record the expense: a. A patent with a 15 year remaining legal life was purchased for $224,000. The patent will be commercially exploitable for another eight years. b. A patent was acquired on a device designed by a production worker. Although the cost of the patent to date consisted of 536,900 in legal fees for handling the patent application, the patent should be commercially valuable during its entire remaining legal life of 18 years and is currently worth $378,000 C. A franchise granting exclusive distribution rights for a new solar water heater within a three-state area for four years was obtained at a cost of $67,500. Satisfactory sales performance over the four years permits renewal of the franchise for another four years (at an additional cost determined at renewal), General Journal Description Debit Credit Todtentoon Depreciation Methods On January 2, 2015, Roth, Inc. purchased a laser cutting machine to be used in the fabrication of a part for one of its key products. The machine cost $90,000, and its estimated useful life was four years or 850,000 cuttings, after which it could be sold for 55.000 Required a. Calculate each year's depreciation expense for the machine's useful life under each of the following depreciation methods (round all answers to the nearest dollar): 1. Straight line 2. Double-declining balance 3. Units of production (Assume annual production in cuttings of 200,000: 350,000; 200,000 and 40,000.) 1. Straight-Line b. Assume that the machine was purchased on July 1, 2015. Calculate each year's depreciation expense for the machine's useful life under each of the following depreciation methods 1. Straight line 2. Double-declining balance