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.