1. Temple Inc. has equipment with a carrying amount of $800,000. The equipments fair value less costs to sell is $780,000, and its value-in-use is $815,000. The equipment is expected to be used in operations in the future. What amount should Temple Inc. report as an impairment to its equipment? $

2. Ludo Inc. acquires a patent for a drug with a remaining legal and useful life of six years on January 1, 2014 for $2,100,000. The company uses straight-line amortization for patents. On January 2, 2016, a new patent is received for a timed-release version of the same drug. The new patent has a legal and useful life of twenty years. The least amount of amortization that could be recorded in 2016 is $ Answer

3. Ricco Co. purchased machinery on January 2, 2010, for $440,000. The straight-line method is used and useful life is estimated to be 10 years, with a $40,000 residual value. At the beginning of 2016 Ricco spent $96,000 to overhaul the machinery. After the overhaul, Ricco estimated that the useful life would be extended 4 years (14 years total), and the residual value would be $20,000. The depreciation expense for 2016 should be $ Answer