Jurassic Company owns machinery that cost $ 1,145,700 and has accumulated depreciation of $ 458,280 . The expected future net cash flows from the use of the asset are expected to be $ 636,500 . The fair value of the equipment is $ 509,200 . Prepare the journal entry , if any , to record the impairment loss .
Question 21 Everly Corporation acquires a coal mine at a cost of $ 501,600 . Intangible development costs total $ 125,400 . After extraction has occurred , Everly must restore the property ( estimated fair value of the obligation is $ 100,320 ), after which it can be sold for $ 200,640 . Everly estimates that 5,016 tons of coal can be extracted . If 878 tons are extracted the first year , prepare the journal entry to record depletion .
Question 22 Francis Corporation purchased an asset at a cost of $ 58,200 on March 1 , 2012 . The asset has a useful life of 8 years and a salvage value of $ 5,820 . For tax purposes , the MACRS class life is 5 years . Compute tax depreciation for each year 2012 – 2017 .
Question 23 Celine Dion Corporation purchases a patent from Salmon Company on January 1 , 2012 , for $ 50,820 . The patent has a remaining legal life of 16 years . Celine Dion feels the patent will be useful for 10 years . Prepare Celine Dion ’ s journal entries to record the purchase of the patent and 2012 amortization .
Question 24 Karen Austin Corporation has capitalized software costs of $ 768,500 , and sales of this product the first year totaled $ 390,630 . Karen Austin anticipates earning $ 911,470 in additional future revenues from this product , which is estimated to have an economic life of 4 years . Compute the amount of software cost amortization for the first year . ( a ) Compute the amount of software cost amortization for the first year using the percent of revenue approach .