Texas college and professional football teams, including Dallas Cowboys, are experimenting with using a robot, called a Mobile Virtual Player(MVP, please follow the link), during practices so that players do not have to tackle each other and risk injury. Instead, the players can tackle the foam-padded robot that mimics the sensation of tackling a person. The MVP robot is battery-operated and can move around the field for approximately 3-6 hours, the length of a regular practice. The MVP-Drive robots were available for sale in January 2017 at original price $5,500 per piece. In 2019 the smaller size MVP-Sprint was introduced to cater to the high school football teams. 2020 price of MVP-Sprint is $3,450. MVP: Mobile Virtual Player was selected as the winner of the "Training the Athlete" category in the NFL's second annual 1st and Future competition, powered by Texas Medical Center! Please, watch first four minutes of the wining pitch from the MVP company founder and -CEO as well as Dartmouth Football Coach Buddy Teevens. 1. (1 point) Dallas Cowboys bought four of MVP robots. Sales tax of 8.25% was applied. So, the purchase price with tax was 1.0825x$5,500=$5,954 per robot. Delivery was covered by the manufacturer (free for the team). How did Dallas Cowboys record the transaction? a. The purchase was capitalized; $23,816 was recorded as an organization expense b. The purchase was expensed; $23,816 was recorded as an operating expense C. The purchase was capitalized; $23,816 was recorded as an equipment, long-term tangible asset d. The purchase was expensed; $5,954 was recorded as a long-term tangible asset 2. (1 point) What if, after a year of intense use, routine maintenance needed to be performed on all of MVP robots. For example, the foam padding might need to be replaced and it will cost $200 per robot. Would the Dallas Cowboys expense or capitalize the cost of the routine maintenance? a. $200 of majtenance expense will be recorded b. $800 of maintenance expense will be recorded c. $200 increase in robot book value will be recorded d. $800 increase in robot book value will be recorded 3. (1 point) MVP robots are estimated by the manufacturer to last five years. Dallas Cowboys has a definite plan at the time of purchase to use robots for three years only and then upgrade to the newest tackle robot model available at that future time. What is estimated useful life? a. One year b. Three years C. Four years d. Five years e. Cannot be determined from the information provided 4. (1 point) Assume that Texas State Bobcat team is considering purchasing two of MVP- Sprints robots in order to minimize concussion injuries during practices. Tax rate is 8.25%. Delivery and installation will be covered by the seller (free for the team). So, the purchase price with tax will be 1.0825x$3,450 $3,735 per robot. What will be annual straight-line depreciation expense that needs to be recorded for two robots at the end of the first year? Estimated useful life of MVPs is four years and expected salvage value is $0. a. $863 b. $934 C. $1,725 d. $1,868 e. $7,470 5. (1 point) What will be the book value of two MVP-Sprints at the end of the second year for Texas State Bobcat team? a. $7,470 b. $5,603 C. $3,735 d. $1,868 e. None of the above