Oriole Chemicals Company acquires a delivery truck at a cost of $20,800 on January 1,2022 . The truck is expected to have a salvage value of $3,400 at the end of its 4 -year useful life. Compute annual depreciation for the first and second years using the straight-line method. On January 1, 2022, the Blossom Company ledger shows Equipment $48,700 and Accumulated Depreciation $18,200. The depreciation resulted from using the straight-line method with a useful life of 10 years and a salvage value of $3,200, On this date, the company concludes that the equipment has a remaining useful life of only 2 years with the same salvage value. Compute the revised annual depreciation. The revised annual depreciation Prepare journal entries to record these transactions. (Credit account titles are outomatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) (a) Blossom Company retires its delivery equipment, which cost $45,890. Accumulated depreciation is also $45,890 on this delivery equipment. No salvage value is received. (b) Assume the same information as in part (a), except that accumulated depreciation for the equipment is $37,400 instead of 45.890. Suppose in its 2022 annual report that McDonald's Corporation reports beginning total assets of $28.15 billion, ending total assets of $29.85 billion, net sales of $22.91 billion, and net income of $4.06 billion. (a) Compute McDonald's return on assets, (Round return on assets to 2 decimal places, e. . 5.12\%) McDonald's return on assets (b) Compute McDonald's asset turnover. (Round asset turnover to 2 decimal places, e.g. 5.12.) McDonald's asset tumover times On March 1, 2022, Sunland Company acquired real estate, on which it planned to construct a small office building, by paying $84,000 in cash. An old warehouse on the property was demolished at a cost of $9,000; the salvaged materials were sold for $1,860. Additional expenditures before construction began included $1,360 attorney's fee for work concerning the land purchase, $4,900 real estate broker's fee, $8,860 architect's fee, and $14,800 to put in driveways and a parking lot. (a) Determine the amount to be reported as the cost of the land. Crane Company purchased a new machine on October 1,2022 , at a cost of $89.920. The company estimated that the machine has a salvage value of $9,440. The machine is expected to be used for 71,300 working hours during its 8 -year life. Compute the depreciation expense under the straight-line method for 2022 and 2023, assuming a December 31 year-end, (Round answers to 2 decimal ploces, e. .5,275.25.) Suppose during 2022 that Federal Express reported the following information (in millions): net sales of $34,850 and net income of \$97. Its balance sheet also showed total assets at the beginning of the year of $24,670 and total assets at the end of the year of $23,300. Calculate the asset turnover and return on assets. (Round asset tumover to 2 decimal places, e.g. 6.25 and return on assets to 1 decimal place, e.g. 17.5\%.) Asset turnover times Return on assets
