Trotman Company had three intangible assets at the end of 2013 (end of the accounting year):

a.	Computer software and Web development technology purchased on January 1, 2012, for $75,000. The technology is expected to have a four-year useful life to the company.
b.	A patent purchased from Ian Zimmer on January 1, 2013, for a cash cost of $30,000. Zimmer had registered the patent with the U.S. Patent Office five years ago.
c.	An internally developed trademark registered with the federal government for $28,000 on November 1, 2013. Management decided to capitalize the $28,000 as an intangible asset with an indefinite life.

Required:
1.	Compute the acquisition cost of each intangible asset.

2.	Compute the amortization of each intangible at December 31, 2013. The company does not use contra-accounts. (Assume the company uses straight-line method.)

3.	Show how these assets and any related expenses should be reported on the balance sheet and income statement for 2013.

rev: 11_21_2013_QC_38170

2. You are a financial analyst for Ford Motor Company and have been asked to determine the impact of alternative depreciation methods. For your analysis, you have been asked to compare methods based on a machine that cost $276,000. The estimated useful life is 10 years, and the estimated residual value is $73,040. The machine has an estimated useful life in productive output of 236,000 units. Actual output was 38,000 in year 1 and 34,000 in year 2.

Required:
1.	For years 1 and 2 only, prepare separate depreciation schedules assuming: (Do not round intermediate calculations and round your final answers to the nearest dollar amount.)

a.	Straight-line method.

b.	Units-of-production method.

c.	Double-declining-balance method.

3.

[The following information applies to the questions displayed below.]

During 2015, Merkley Company disposed of three different assets. On January 1, 2015, prior to their disposal, the accounts reflected the following:

Asset	Original Cost		Residual Value		Estimated Life	Accumulated Depreciation (straight line)
Machine A	$	30,000	$	3,000	10 years	$	21,600 (8 years)
Machine B		45,000		4,000	8 years		30,750 (6 years)
Machine C		76,400		6,500	17 years		49,341 (12 years)

The machines were disposed of in the following ways:

a.	Machine A: Sold on January 1, 2015, for $8,000 cash.
b.	Machine B: Sold on December 31, 2015, for $9,925; received cash, $2,100, and a $7,825 interest-bearing (12 percent) note receivable due at the end of 12 months.
c.	Machine C: On January 1, 2015, this machine suffered irreparable damage from an accident. On January 10, 2015, a salvage company removed the machine at no cost.

12.

value: 10.00 points

Required information

Required:
1.	Give all journal entries related to the disposal of each machine in 2015. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

a.	Machine A.

b.	Machine B.

c.	Machine C.