and sent to the instructor. See Gradebook for score details. On March 10, 2019, Lost World Company sells equipment that it purchased for $ 192,000 on August 20, 2012. It was originally estimated that the equipment would have a life of 12 years and a salvage value of $ 16,800 at the end of that time, and depreciation has been computed on that basis. The company uses the straightline method of depreciation. Following are the assumptions with respect to partial periods:( 1) Depreciation is computed for the exact period of time during which the asset is owned.( Use 365 days for the base and record depreciation through March 9, 2019.)( 2) Depreciation is computed for the full year on the January 1 balance in the asset account.( 3) Depreciation is computed for the full year on the December 31 balance in the asset account.( 4) Depreciation for one-half year is charged on plant assets acquired or disposed of during the year.( 5) Depreciation is computed on additions from the beginning of the month following acquisition and on disposals to the beginning of the month following disposal.( 6) Depreciation is computed for a full period on all assets in use for over one-half year, and no depreciation is charged on assets in use for less than one-half year.( Use 365 days for base.) Briefly evaluate the methods above, considering them from the point of view of basic accounting theory as well as simplicity of application. Exercise 11-24 The 2014 Annual Report of Tootsie Roll Industries contains the following information.( in millions) December 31, 2014 December 31, 2013 Total assets $ 910.4 $ 888.4 Total liabilities 219.3 208.1 Net sales 539.9 539.6 Net income 63.2 60.8 Compute the following ratios for Tootsie Roll for 2014. Exercise 12-4 Presented below is selected information for Cullumber Company. Answer the questions asked about each of the factual situations. 1. Cullumber purchased a patent from Vania Co. for $ 1,230,000 on January 1, 2015. The patent is being amortized over its remaining legal life of 10 years, expiring on January 1, 2025. During 2017, Cullumber determined that the economic benefits of the patent would not last longer than 6 years from the date of acquisition. What amount should be reported in the balance sheet for the patent, net of accumulated amortization, at December 31, 2017? 2. Cullumber bought a franchise from Alexander Co. on January 1, 2016,