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Question:Cambridge Company purchased a truck on January 1, 2018. Cambridge paid $25,000 for the truck. The truck is expected to have a $3,500...
Question:Cambridge Company purchased a truck on January 1, 2018. Cambridge paid $25,000 for the truck. The truck is expected to have a $3,500 residual value and a 5-year life. Cambridge has a December 31 fiscal year end. Using the double-declining balance method, how much is the 2019 depreciation expense? (Enter only whole dollar values.) Hint: what is the year 2 depreciation amount?
Your Answer:
Cambridge Company purchased a truck on January 1, 2018. Cambridge paid $24,000 for the truck. The truck is expected to have a $3,500 residual value and a 5-year life. Cambridge has a December 31 fiscal year end. Using the straight-line method, how much is the 2019 depreciation expense? (Enter only whole dollar values.)
Your Answer:
Somerset Company acquired a piece of equipment with a list price of $200,000 for $176,000. Freight to Somerset's location was $6,000. Installation and testing costs were $9,500. An old piece of equipment was scrapped as a result of this new purchase. The old piece of equipment had an undepreciated value (net book value) of $8,000. The new piece of equipment is expected to have a 10 year life and a salvage value of $15,000. What is the total value assigned to the new piece of equipment?
Bowie Company uses a calendar year. On December 31, 2018, after adjusting entries were posted, Bowie Company sold a machine which was originally purchased on January 1, 2015. The historical cost was $24,000, the salvage value assumed was $1,000 and the original estimated life was five years.. It was sold for $5,800 cash. Using this information, how much should be recorded on December 31 for the Gain or (Loss)? Round to whole dollars. Use straight-line depreciation.
On January 2, 2019, Adelphi Company purchased a patent for $265,000 plus $5,000 in legal fees. On that date, the patent had a remaining legal life of 13 years. Adelphi Company expects to use the patent for 6 years after which time it will be worthless. How much is the annual amortization expense for 2019? Round to nearest whole dollar.
Annapolis Company was recently sold for $490,000. Annapolis had assets & liabilities appraised at the time of the sale in the amounts of:
Item
Amount
Accounts Receivable assumed by buyer
$93,000
Inventory
$255,000
Property, Plant & Equipment (net)
$555,000
Notes Payable assumed by buyer
$605,000
Using this information, how much should be recorded as Goodwill for this transaction?
