QS 8-6 and 8-9 only

A fleet of refrigerated delivery trucks is acquired on January 5, 2013, at a cost of $830,000 with an estimated useful life of eight years and an estimated salvage value of $75,000. Compute the depreciation expense for the first three years using the double-declining-balance method. Assume a companys requirement carries a book value of $16,000 ($16, 500 cost less $500 accumulated depreciation) and a fair value of $14, 750, and that the $1, 250 decline in fair value in comparison to the book value meets the 2-step impairment test. Prepare the entry to record this $1, 250 impairment. Classify the following as either revenue or capital expenditures. a. Paid $40,000 cash to replace a compressor on a refrigeration system that extends its useful life by four years. b. Paid $200 cash per truck for the cost of their annual tune-ups. c. Paid $175 for the monthly cost of replacement filters on an air-conditioning system. d. Completed an addition to an office building for $225,000 cash. Prepare the journal entries to record transactions a and d of part 1. Hortez Co. owns equipment that cost $76, 800, with accumulated depreciation of $40, 800. Hortez sells the equipment for cash. Record the sale of the equipment assuming Hortez sells the equipment for (1) $47,000 cash, (2) $36,000 cash, and (3) $31,000 cash. Corentine Company acquires an ore mine at a cost of $1, 400,000. It incurs additional costs of $400,000 to access the mine, which is estimated to hold 1,000,000 tons of ore. The estimated value of the land after the ore is removed is $200,000. 1. Prepare the entry(ies) to record the cost of the ore mine. 2. Prepare the year-end adjusting entry if 180,000 tons of ore are mined and sold the first year