Prepare Krieg's journal entries to record these two transactions very truck at a cost of $31,000 on Janu 4-year ine BE9.4 Gordon Chemicals Company acquires a deli ary 1, 2017. The truck is expected to have a salvage value of $4,000 at the useful life. Compute annual depreciation for the first and second years using esrai line method. ion and BE9.5 Ivy Company purchased land and a building on January 1, 2017. Management's best estimate of the value of the land was $100,000 and of the building $250,000. Ho wever management told the accounting department to record the land at $230,000 and the build- ing at $120,000. The building is being depreciated on a straight-line basis over 20 years with no salvage value. Why do you suppose management request ed this accounting treat $36,000 and date, the ment? Is it ethical? BE9-6 On January 1, 2017, he Hermann Company ledger shows Equipment Accumulated Depreciation $13,600. The depreciation resulted from using line method with a useful life of 10 years and a salvage value of $2,000. On this company concludes that the equipment has a remaining useful life of only 2 years same salvage value. Compute the revised annual depreciation. reciation with the disposal BE9-7 Prepare journal entries to record these transactions. (a) Company retires its delivery equipment, which cost $41,000. Accumulated depreciation is also $41,000 on delivery equipment. No salvage value is received. (b) Assume the same informati part (a), except that accumulated depreciation for the equipment is $37.2 $41,000 this on as in 00 instead of sale of BE9-8 Antone Company sells office equipment on July 31, 2017, for $21,000 cash. The accumulated office equipment originally cost $72,000 and as of January 1, 2017, had depreciation of $42,000. Depreciation for the first 7 months of 2017 is $4,600. Prepare journal entries to (a) update depreciation to July 31, 2017, and (b) record the sale of the equipment. -patenBE9.9 Abner Company purchases a patent for $ 156,000 on January 2, 2017. Its estimated useful life is 6 years. journal entry to record amortization expense for the first year (b) Show how this patent is reported on the balance sheet at the end of the first year ts and BE9-10 Suppose in its 2017 annual report that McDonald's Corporation reports beginning total assets of $28.46 billion, ending total assets of $30.22 billion, net sales of $22.74 bil lion, and net income of $4.55 billion. (a) Compute McDonald's return on assets. (b) Compute McDonald's asset turnover. BE9-11 Suppose Nike, Inc. reported the following plant assets and intangible assets for the year ended May 31, 2017 (in millions): other plant assets $965.8, land $221.6, patents and trademarks (at cost) $515.1, machinery and equipment $2,094.3, buildings $974.0 goodwill (at cost) $193.5, accumulated amortization $47.7, and accumulated depreciation $2,298.0. Prepare a partial balance sheet for Nike for these items d assets 9-12 Hunt Company reported net income of $157,000. It reported depreciation expense of $12,000 and accumulated depreciation of $47,000. Amortization expense was $8,000. Hunt purchased new equipment during the year for $50,000. Show how this information be used to determine net cash provided by operating activities under the indirect method ded BE9-13 Depreciation information for Gordon Chemicals Company is given in BE9.4 Assuming the declining-balance depreciation rate is double the straigh compute annual depreciation for the first and second years under the declining-balance line rate