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 2021
