The Fairway mower was purchased June 1, 2018 for $85,000. The owner thinks the car can be resold for $15,000 after its 15 year life (or 140,000 machine hours). Units of production depreciation will be used. The prior bookkeeper did not record any depreciation for 2018, 2019 or 2020. The owner has told you that the accountant at LMNOP accounting is fine with you making one journal entry to record all the depreciation that the bookkeeper missed for all 3 years (calculate 2018, 2019 and 2020 depreciation and make one journal entry to record). Machine Hours Used

2018 10,000

2019 24,000

2020 25,000

2021 3,000

February 15th, 2021, the same Fairway mower from above was sold for $60,000 75% paid in cash February 15th, with the remaining 25% as a signed promissory note to be repaid July 1, 2021. The owner of the golf course has asked you to record all the applicable entries to record the sale of the fairway mower February 15th, 2021. (hint, do you need to do anything with the machine hours used in 2021 seen above?)

HollyRock Golf Course purchased Rainbow Inc., January 1, 2020 for $10,000,000. Net assets accounted for $8,000,000 of the purchase price, resulting in a $2,000,000 charge to Goodwill. Goodwill is expected to last 10 years. During the recent management meeting, is was discovered that there was impairment, supported by facts and Board approval. In light of the impairment, it was agreed that the value of the company at the time of purchase should have been $8,500,000, not $10,000,000, overstating Goodwill. Record a journal entry, if needed, for December 31, 2020.