Question 1 View Policies Current Attempt in Progress Ivanhoe Company was organized on January 1. During the first year of operations, the following plant asset expendit receipts were recorded in random order. $28,000 38,000 645,000 Debit 1. Excavation costs for new building 2. Architect's fees on building plans 3. Full payment to building contractor 4. Cost of real estate purchased as a plant site (land $260,000 and building $25,000) Cost of parking lots and driveways Accrued real estate taxes paid at time of purchase of land 7. Installation cost of fences around property 8. Cost of demolishing building to make land suitable for construction of new building Real estate taxes paid for the current year on land wi o 34,000 3,670 7,300 36,000 6,900 $1,083,870 Credit 10. Proceeds from salvage of demolished building $ 12,500 Analyze the transactions using the following table column headings. Enter the amounts in the appropriate columns. For amounts in the Other Accounts column, also indicate the account title. (If an amount falls into either the Land or Buildings enter "Not Applicable in the account title column. Enter negative amounts using either a negative sign preceding the numbers Current Attempt in Progress In recent years, Sandhill Co. has purchased three machines. Because of frequent employee turnover in the accounting department, a different accountant was in charge of selecting the depreciation method for each machine, and various methods have been used. Information concerning the machines is summarized in the table below. Salvage Value Useful Life (in years) Cost Depreciation Method Machine Acquired 10 Straight-line Jan. 1, 2020 July 1, 2021 $140,000 87,000 $40,000 11,100 Declining-balance Nov. 1, 2021 72,100 8,100 Units-of-activity For the declining-balance method, Sandhill Co, uses the double-declining rate. Folkhe units-of-activity method, total machine hours are expected to be 32,000. Actual hours of use in the first 3 years were: 2021, 780; 2022,5,400; and 2023, 6,900. Compute the amount of accumulated depreciation on each machine at December 31, 2023. MACHINE 1 MACHINE 2 MACHINE 3 Accumulated Depreciation at December 31 Question 3 View Policies Current Attempt in Progress On January 1, 2022, Blossom Company had a balance of $416,500 of goodwill on its balance sheet that resulted from the purchase of a small business in a prior year. The goodwill had an indefinite life. During 2022, the company had the following additional transactions. Jan. 2 Purchased a patent (5-year life) $337,050. July 1 Acquired a 9-year franchise; expiration date July 1, 2,031, $568,800. Sept. 1 Research and development costs $180,500. Prepare the necessary entries to record the transactions related to intangibles. All costs incurred were for cash. (Record entries in the order displayed in the problem statement. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter for the amounts)
