Question 2 [80 points]

Star Inc.'s property, plant and equipment subledger at January 1, 2014 appeared as follows:

Question 2 [80 points] Star Inc.'s property, plant and equipment subledger at January 1, 2014 appeared as follows: Cost Information Depreciation/Amortization Amort. Accum. Balance Expense for Accum. Balance Description Purchase Date Method Cost Residual Life Dec 31, 2013 2014 Dec. 31, 2014 Building July 3, 2010 S/L 195,900 27.900 10 years Furniture September 3, 2013 DDB 168,000 49.700 10 years Automobiles November 3, 2012 Units 276,250 10,000 1,065,000 km Equipment January 3, 2012 S/L 42,600 9,600 5 years Machinery January 3, 2013 S/L 164,100 29,700 8 years Patents May 3, 2012 S/L 72,000 0 5 years Boats May 3, 2014 DDB 34,356 5,000 3 years Machinery May 3, 2014 DDB 26,644 3,000 6 years Additional information: Star Inc. calculates depreciation and amortization to the nearest month. S/L = Straight Line; DDB = Double-Declining Balance; Units = Units of Production There have been no disposals, revisions, or impairments prior to January 1, 2014 Actual kilometers driven by the automobiles: 2012 - 398,000; 2013 - 159,000; 2014 - 374,000 At the beginning of 2014, it was determined that the equipment would be used for 1 year less than originally estimated. Used boats and machinery were purchased on May 3, 2014, for a total of $61,000 at a bankruptcy sale. The appraised value of the boats was $49,000 and of the machinery $38,000. The old machinery was given to a charitable organization on May 6, 2014. The estimated useful lives and residual values of the May 3 purchases were 3 years and $5,000 for the boats, and 6 years and $3,000 for the machinery. These assets will be depreciated using the DDB method. Complete the PPE asset subledger; round depreciation per unit of production to the nearest cent; round your final answers to the nearest dollar. Using the information from the PPE asset subledger and the following December 31, 2014 adjusted account balances, complete the income statement (showing all depreciation and amortization expenses together under expenses) and a statement of changes in equity for the year ended December 31, 2014 along with the December 31, 2014 classified balance sheet. Assume that the corporation issued $34.900 worth of shares during 2014. Star Inc. Income Statement For Year Ended December 31, 2014 Revenues Commissions Earned Rent Earned Interest Earned Consulting Revenue Earned Total revenues Star Inc. Income Statement For Year Ended December 31, 2014 Revenues Commissions Earned Rent Earned Interest Earned Consulting Revenue Earned, Total revenues Expenses Loss on Sale/Disposal Depreciation/Amortization Total expenses Income before tax Income taxes expense Net income Account Accounts payable Cash Commissions earned Consulting revenue earned Dividends Income taxes expense, Interest earned Interest payable Land Long-term notes payable Loss on sale/disposal Mortgage payable Notes receivable Rent earned Rent receivable Retained earnings Share capital Unearned rent Balance 133,900 164,800 94,500 71,300 72.100 21,000 136,500 74.600 27,300 89,000 141,700 138,900 27,500 96,200 61,000 119,700 127,100 8,600 (select one) Statement of Changes in Equity (select one) Share Retained Total Capital Earnings Equity || F (select one) Balance Sheet (select one)