Please answer the following: Partial$-$year depreciation

Equipment acquired at a cost of $$105,000$ has an estimated residual value of $$12,000$ and an estimated useful life of $10$

years. It was placed into service on May $1$ of the current fiscal year, which ends on December $31.$

a$.$ Determine the depreciation for the current fiscal year and for the following fiscal year by the straight$-$line method.

b$.$ Determine the depreciation for the current fiscal year and for the following fiscal year by the double$-$declining$-$

balance method.

Depreciation

Entries for sale of fixed asset

Equipment acquired on January $8$ at a cost of $$212,000$ has an estimated useful life of $15$ years, has an estimated

residual value of $$14,000,$ and is depreciated by the straight$-$line method,

a$.$ What was the book value of the equipment at the end of the fifth year, December $31?$

$$

b$.$ Assuming that the equipment was sold on April $1$ of the sixth year for $$105,800.$

Journalize the entry to record depreciation for the $3$ months until the sale date. If an amount box does not require an

entry, leave it blank.

Journalize the entry to record the sale of the equipment. If an amount box does not require an entry, leave it blank. Disposal of fixed asset

Equipment acquired on January $6$ at a cost of $$425,000$ has an estimated useful life of $20$ years and an estimated

residual value of $$35,000.$

a$.$ What was the annual amount of depreciation for Years $1-3$ using the straight$-$line method of depreciation?

b$.$ What was the book value of the equipment on January $1$ of Year $4?$

$

c$.$ Assuming that the equipment was sold on January $3$ of Year $4$ for $$360,000,$ journalize the entry to record the sale.

If an amount box does not require an entry, leave it blank.

January $3$

d$.$ Assuming that the equipment was sold on January $3$ of Year $4$ for $$370,000$ instead of $$360,000,$ journalize the

entry to record the sale. If an amount box does not require an entry, leave it blank.

January $3$

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Depletion entries

Alaska Mining Co$.$ acquired mineral rights for $$67,500,000.$ The mineral deposit is estimated at $30,000,000$ tons. During

the current year, $4,000,000$ tons were mined and sold.

a$.$ Determine the amount of depletion expense for the current year. Round the depletion rate to two decimal

places.

$4$

b$.$ Journalize the adjusting entry on December $31$ to recognize the depletion expense. If an amount box does not

require an entry, leave it blank.

December $31$ Amortization entries

Kleen Company acquired patent rights on January $10$ of Year $1$ for $$2,800,000.$ The patent has a useful life equal to its

legal life of $8$ years. On January $7$ of Year $4,$ Kleen successfully defended the patent in a lawsuit at a cost of $$38,000.$

a$.$ Determine the patent amortization expense for Year $4$ ended December $31.$

$

b$.$ Journalize the adjusting entry on December $31$ of Year $4$ to recognize the amortization. If an amount box does not

require an entry, leave it blank.

Comparing three depreciation methods

Dexter Industries purchased packaging equipment on January $8$ for $$81,900.$ The equipment was expected to have a

useful life of $3$ years, or $20,000$ operating hours, and a residual value of $$4,500.$ The equipment was used for $7,600$

hours during Year $1,6,000$ hours in Year $2,$ and $6,400$ hours in Year $3.$

Required:

Determine the amount of depreciation expense for the $3$ years ending December $31,$ by $($a$)$ the straight$-$line

method, $($b$)$ the units$-$of$-$activity method, and $($c$)$ the double$-$declining$-$balance method. Also determine the total

depreciation expense for the $3$ years by each method. Do not round intermediate calculations when determining

the depreciation rate. Round the final answers for each year to the nearest whole dollar.

Depreciation Expense

What method yields the highest depreciation expense for Year $1?$

What method yields the most depreciation over the $3-$year life of the equipment?