View Policies Current Attempt in Progress Crane Inc. purchased land, building, and equipment from Laguna Corporation for a cash payment of $333,900. The estimated fair values of the assets are land $63,600, building $233,200, and equipment $84,800. At what amounts should each of the three assets be recorded? (Round intermediate percentage calculations to 5 decimal places e.g. 18.25124 and final answers to O decimal places, e.g. 5,275.) Recorded Amount Land $ Building $ Equipment $ eTextbook and Media Save for Later Attempts: 0 of 5 used Submit AnswerPronghorn Corporation owns machinery that cost $21,600 when purchased on July 1, 2017. Depreciation has been recorded at a rate of $2,592 per year, resulting in a balance in accumulated depreciation of $9,072 at December 31, 2020. The machinery is sold on September 1, 2021, for $11,340. Prepare journal entries to (a) update depreciation for 2021 and (b) record the sale. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) No. Account Titles and Explanation Debit Credit (a) (b) eTextbook and MediaView Policies Current Attempt in Progress Head land Co. both purchases and constructs various equipment it uses in its operations. The fol lowing items for two different types of equipment were recorded in random order during the calendar year 2020. Purchase Cash paid for equipment, including sales tax of $7,200 $151,200 Freight and insurance cost while in transit 2,380 Cost of moving equipment into place at factory 4,464 Wage cost for technicians to test equipment 5,760 Insurance premium paid during rst year of operation on this equipment 2,160 Special plumbing fixtures required for new equipment 11,520 Repair cost incurred in first year of operations related to this equipment 1,372 Construction Material and purchased parts (gross cost $283,000; failed to take 2% cash discount) $288,000 lmputed interest on funds used during construction [stock nancing] 20,160 Labor costs 273,600 Allocated overhead costs [fixed-$23,800; variable-$43,200) ?2,000 Profit on self-construction 43,200 Construction Material and purchased parts l{gross cost $288,000; failed to take 2% cash discount} $288,000 Imputed interest on funds used during construction [stock nancingl 20,160 Labor costs 213,600 Allocated overhead costs [xed-$23,300; variable-$43,200) 32,000 Prot on self-construction 43,200 Cost of installing equipment 6,336 Compute the total cost to be capitalized for each of these two pieces of equipment. Purchase equipment $ l Construction equipment $ l eTextbook and Media On December 31, 2019, Blue Inc. borrowed $4,260,000 at 12% payable annually to finance the construction of a new building. In 2020, the company made the following expenditures related to this building: March 1, $511,200; June 1, $852,000; July 1, $2,130,000; December 1, $2,130,000. The building was completed in February 2021. Additional information is provided as follows. 1. Other debt outstanding 10-year, 13% bond, December 31, 2013, interest payable annually $5,680,000 6-year, 10% note, dated December 31, 2017, interest payable annually $2,272,000 2. March 1, 2020, expenditure included land costs of $213,000 3. Interest revenue earned in 2020 $69,580 (a) Determine the amount of interest to be capitalized in 2020 in relation to the construction of the building. The amount of interest $ e Textbook and MediaWaterway Company purchased equipment for $301,200 on October 1, 2020. It is estimated that the equipment will have a useful life of 8 years and a salvage value of $13,200. Estimated production is 45,000 units and estimated working hours are 20,000. During 2020, Waterway uses the equipment for 530 hours and the equipment produces 1,000 units. Compute depreciation expense under each of the following methods. Waterway is on a calendar-year basis ending December 31. (Round rate per hour and rate per unit to 2 decimal places, e.g. 5.35 and final answers to O decimal places, e.g. 45,892.) (a) Straight-line method for 2020 (b) Activity method (units of output) for 2020 $ (c) Activity method (working hours) for 2020 (d) Sum-of-the-years'-digits method for 2022 (e) Double-declining-balance method for 2021Machinery purchased for $69,000 by Vaughn Co. in 2016 was originally estimated to have a life of 8 years with a salvage value of $4,600 at the end of that time. Depreciation has been entered for 5 years on this basis. In 2021, it is determined that the total estimated life should be 10 years with a salvage value of $5,175 at the end of that time. Assume straight-line depreciation. (a) Prepare the entry to correct the prior years' depreciation, if necessary. (If no entry is required, select "No entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit eTextbook and MediaPrepare the journal entry to record depreciation expense for 2021. (If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit eTextbook and Media List of Accounts The fair value of the equipment at December 31, 2021, is $5,355,000. Prepare the journal entry (if any) necessary to record this increase in fair value. (If no entry is required, select "No entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit CreditPresented below is information related to equipment owned by Concord Company at December 31, 2020. Cost $9,450,000 Accumulated depreciation to date 1,050,000 Expected future net cash flows 7,350,000 Fair value 5,040,000 Assume that Concord will continue to use this asset in the future. As of December 31, 2020, the equipment has a remaining useful life of 4 years. Prepare the journal entry (if any) to record the impairment of the asset at December 31, 2020. (If no entry is required, select "No entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Dec. 31Presented below is information related to equipment owned by Concord Company at December 31, 2020. Cost $9,450,000 Accumulated depreciation to date 1,050,000 Expected future net cash flows 7,350,000 Fair value 5,040,000 Concord intends to dispose of the equipment in the coming year. It is expected that the cost of disposal will be $21,000. As of December 31, 2020, the equipment has a remaining useful life of 4 years. (a) Prepare the journal entry (if any) to record the impairment of the asset at December 31, 2020. (If no entry is required, select "No entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Dec. 31Swifty Company owns 9.000 acres of timberland purchased in 2009 at a cost of $1.442 per acre. At the time of purchase, the land without the timber was valued at $412 per acre. In 2010, Swifty built re lanes and roads, with a life of 30 years, at a cost of $36,520. Every year, Swifty sprays to prevent disease at a cost of $3,090 per year and spends $7,210 to maintain the re lanes and roads. During 2011, Swifty selectively logged and sold 72 1,000 board feet of timber, of the estimated 3,605,000 board feet. In 2012, Swifty planted new seedlings to replace the trees cut at a cost of $103,000. (a) Determine the depreciation expense and the cost of timber sold related to depletion for 201 1. {Round the nal answers to 0' decimal places, 2.2. 5,125.} Depreciation expense $ ' Cost of timber sold 5 ' eTexthook and Media