3) On January 1, Year 1, Miller Company purchased equipment for $36,000. Residua

Question

3) On January 1, Year 1, Miller Company purchased equipment for $36,000. Residual value at the end of an estimated six-year service life is expected to be $8,000. The company uses the double-declining balance method. For how much would each item below be reported at the end of Year 2?

Requirements:

1) Depreciation Expense$___________

2) Accumulated Depreciation$___________

3) Book Value$________________________

Note:

the answers for

decreciation : 6222.84

deprecition:15558.04

book value : 20441.96

this answers are worng please verify

7) On January 1, Year 1, Lowing Company acquired a patent from Generics Research Corporation for $3 million. The legal life of the patent is 20 years, but Lowing expects to use it for 5 years. Pawson Company has committed to purchase the patent from Lowing for $500,000 at the end of that 5-year period. Lowing uses the straight-line method to amortize intangible assets with finite useful lives. What is the amount of amortization expense each year?

Requirements:

Amortization Expense________________

Note: the amount 25,000,000 is wrong

Knowledge Check 01
8) Corning Industries owns a patent for which it paid $77,000. At the end of the current year, accumulated amortization on the patent totaled $14,000. Due to adverse economic conditions, Corning’s management determined that it should assess whether an impairment loss should be recognized for the patent. The estimated undiscounted future cash flows to be provided by the patent total $45,000, and the patent's fair value is $30,000. (a) What is the amount of the impairment loss, if any, on the patent at the end of the current year? (b) What is the book value of the patent after any impairment loss is recorded?

Requirements :

a) imparment loss___________

b) Book value_____________

10) On January 1, Year 1, Sanders Company acquired a patent in conjunction with the purchase of another company. The patent, valued at $600,000, was estimated to have a 10-year life and no residual value. Sanders uses the straight-line method of amortization for intangible assets. The unamortized cost (balance in the Patent account) was $480,000 at December 31, Year 2. On January 5, Year 3, Sanders successfully defended its patent against infringement and paid cash of $40,000 for the related litigation costs. What is the amount of amortization expense that will be recorded for Year 3?

Requirements:

Amortization Expense__________________________

Explanation / Answer

As per chegg guidelines we answer one question per post. Kindly post remaining questions in next post Dear Student Thank you for using Chegg Please find below the answer and please give thumbs up   Year 2 1) Depreciation Expense$              8,000.00 2) Accumulated Depreciation = 12000 + 8000            20,000.00 3) Book Value$_            16,000.00 Cost of equipment            36,000.00 Residual value              8,000.00 Life   6 Years Double decling balance method rate = 1/6%*2 33.33% Particulars Year 1 Year 2 Opening Balance            36,000.00           24,000.00 Depreciation at 33.33%            12,000.00             8,000.00 Closing balance            24,000.00           16,000.00

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