problem 5, 6, 7
.II Metro by T-Mobile'ai~ 2: 29 AM 1 CB. 8 ezto. mheducation. com -@ L Award: 14.28 points On January 1, 2021, the Mason Manufacturing Company began construction of a building to be used as its office headquarters. The building was completed on September 30, 2022. Expenditures on the project were as follows: January 1, 2021 $1,350,000 March 1, 2021 1,080,000 June 30, 2021 1,280,000 October 1, 2021 1,080,000 January 31, 2022 342,000 April 30, 2022 675,000 August 31, 2022 972,000 On January 1, 2021, the company obtained a $3,800,000 construction loan with a 15% interest rate. The loan was outstanding all of 2021 and 2022. The company's other interest-bearing debt included two long-term notes of $4,000,000 and $6,000,000 with interest rates of 8% and 10%, respectively. Both notes were outstanding during all of 2021 and 2022. Interest is paid annually on all debt. The company's fiscal year-end is December 31. Required: 1. Calculate the amount of interest that Mason should capitalize in 2021 and 2022 using the specific interest method. 2. What is the total cost of the building? 3. Calculate the amount of interest expense that will appear in the 2021 and 2022 income statements. Complete this question by entering your answers in the tabs below. Req 1 and 3 Req 2 Calculate the amount of interest that Mason should capitalize in 2021 and 2022 using the specific interest method and interest expense that will appear in the 2021 and 2022 income statements. (Do not round intermediate calculations.) Show IeIsA Interest capitalized Interest expense References r11 m .nl Metro by T-Mobile a: a 2:30 AM 4 g . 7, Awe rd: 14. 32 points The following information concerns the intangible assets of Epstein Corporation: a. On June 30, 2021, Epstein completed the acquisition of the Johnstone Corporation for $1,580,000 in cash. The fair value of the net identiable assets of Johnstone was $1,350,000. b. Included in the assets purchased from Johnstone was a patent that was valued at $60,200. The remaining legal life of the patent was 12 years, but Epstein believes that the patent will only be useful for another seven years. c. Epstein acquired a franchise on October 1, 2021, by paying an initial franchise fee of $154,800. The contractual life of the franchise is 9 years. Required: 1. Prepare year-end adjusting journal entries to record amortization expense on the intangibles at December 31, 2021. 2. Prepare the intangible asset section of the December 31, 2021, balance sheet. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare year-end adjusting journal entries to record amortization expense on th intangibles at December 31, 2021. ((Do not round intermediate calculations). If no entry is required for a transaction/event, select "No journal entry required" in the rst account eld.) View lransaclinn list Journal entry worksheet Show Ilsi A Record the goodwill amortization. Note: Enter debits before credits. Record entry Clear entry View general journal .II Metro by T-Mobile'ai~ 2: 30 AM 1 CB. 0 ezto. mheducation. com G) 5_ Award: 14.28 points On March 31, 2021. the Herzog Company purchased a factory complete with vehicles and equipment. The allocation of the total purchase price of $920,000 to the various types of assets along with estimated useful lives and residual values are as follows: Estimated Useful Asset Cost Estimated Residual Value Life (in years) Land 5 140.000 NIA NIA Building 420.000 none 25 Equipment 206.000 10% of cost 6 Vehicles 154.000 $14.000 10 Total $ 920. 000 On June 29. 2022, equipment included in the March 31, 2021. purchase that cost $92,000 was sold for $72,000. Herzog uses the straight-line depreciation method for building and equipment and the double-declining-balance method for vehicles. Partial-year depreciation is calculated based on the number of months an asset is in service. Required: 1. Compute depreciation expense on the building, equipment, and vehicles for 2021. 2. Prepare the journal entries to record the depreciation on the equipment sold on June 29, 2022. and the sale of equipment. 3. Compute depreciation expense on the building, remaining equipment, and vehicles for 2022. Complete this question by entering your answers in the tabs below. Requlred 1 Required 2 Requlred 3 Compute depreciation expense on the building, equipment, and vehicles for 2021. (Do not round intermediate calculations.) Building Equipment Required 2 ) References rt: m
