Part 1: On October 1, 2014 The Han Solo Company purchased 4 assets as descrived below

Millenium Falcon cost $1,950,000, Life 14 years, $90,000 salvage

Jedi Sword cost $280,000, Life 9 years, salvage $10,000 Speeder cost $150,000, Life 12 years, salvage $22,000

Death Star cost $1,500,000, Life 30 years, Salvage $90,000, Mileage 2,000,000 miles

Vader elects to depreciate the Millenium Falcon using straight-line; the Jedi sword using double declining balance, the speeder using sum of years digits, and the Death Star using units of activity: in 2014 Han Solo drove the Death Star 125,000 miles, in 2015 Han Solo rove the Death Star 350,000 miles Determine depreciation expense and book value for each of the 4 assets on December 31, 2014 and 2015

Part 2 Using the information from part 1: In July 2014 Han Solo chose to use group/composite depreciation for the Falcon, the Jedi sword and the speeder. On January 1, 2015 Han Solo purchased a C3P0 unit for $900,000 which will belong in the group/composite Determine depreciation expense for 2015 for the group of assets (you can ignore the Death Star for part 2)

Part 3 Ignore part 2 when doing part 3: Going back to part 1: On January 1,2016 Han Solo spent $317,000 adding a hyper-drive to the Millenium Falcon. With this hyper-drive the Falcon will now last a total of 19 years instead of the original 14 years. Make a journal entry for when Solo installs the hyper-drive and determine 2016 depreciation expense for the Millenium Falcon.

Part 4 Ignore parts 2 and 3 when doing part 4: Go back to part 1: On January 1, 2016 the Jedi sword was stolen by The First Order. The insurance company gave Solo $55,000 for his stolen sword. Make the journal entry on January 1, 2016 when the sword is stolen, and the Insurance company gives Solo the $55,000 (one journal entry incorporating both events is acceptable and preferred since the insurance company settles claims quickly)