Office furniture cost $948,000 on July 1, 2020. Its estimated salvage value is $87,200 and its expected life is 5 years. Calculate the depreciation expense by straight-line for 2020. (Round answer to 0 decimal places, e.g. 5,275. Do NOT use a dollar sign in your answer.) $   Calculate the depreciation expense by double-declining balance for 2021. (Round answer to 0 decimal places, e.g. 5,275. Do NOT use a dollar sign in your answer.) $   Calculate the depreciation expense by sum-of-the-years’-digits for 2021. ((Round answer to 0 decimal places, e.g. 5,275. Do NOT use a dollar sign in your answer.) $   Which depreciation method results in the smallest income amount for 2021? Use SL for straight line, DDB for double-declining balance, and SYD for sum-of-the-years’-digits.

The following information relates to a patent owned by Scott Company: Cost  $      4,587,000 Carrying amount  $      2,594,000 Expected future net cash flow  $      2,487,000 Fair value  $      2,086,000 Prepare the journal entry (if any) to record the impairment of the asset at December 31, 2019, assuming Scott will continue to use the asset in the future. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select “No Entry” for the account titles and enter 0 for the amounts. Round to the nearest dollar. Do NOT use a dollar sign in your answer.) Account Titles and Explanation   DR ($) CR ($)          Using the same assumption as part (a) above, prepare the journal entry to record amortization expense for 2020 assuming the asset has a remaining useful life of 4 years at the beginning of 2020. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select “No Entry” for the account titles and enter 0 for the amounts. Round to the nearest dollar. Do NOT use a dollar sign in your answer.) Account Titles and Explanation   DR ($) CR ($)                            Using the same assumption as part (a) above, prepare the journal entry (if any) at December 31, 2020, assuming the fair value of the asset has increased to $2,560,000. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select “No Entry” for the account titles and enter 0 for the amounts. Round to the nearest dollar. Do NOT use a dollar sign in your answer.) Account Titles and Explanation   DR ($) CR ($)                         Prepare the journal entry (if any) to record the impairment of the asset at December 31, 2019, assuming Pharoah ceased using the patent at the end of 2019 and intends to dispose of the patent in the coming year. Pharoah expects to incur a $11,600 cost of disposal. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select “No Entry” for the account titles and enter 0 for the amounts. Round to the nearest dollar. Do NOT use a dollar sign in your answer.) Account Titles and Explanation   DR ($) CR ($)                       

What interest rate (the nearest percent) must Lee earn on a $780,000 investment today so that he will have $950,000 after 5 years?   

A principal objection to the straight-line method of depreciation is that it

Which of the following is a characteristic of a perpetual inventory system?

Maroon Corp. purchased factory equipment that was installed and put into service January 1, 2020, at a total cost of $153,000. Salvage value was estimated at $9,000. The equipment is being depreciated over five years using the double-declining balance method. For the year 2021, Maroon should record depreciation expense on this equipment of

Purchased goodwill should

If the month-end bank statement shows a balance of $106,000, outstanding checks are $21,000, a deposit of $19,000 was in transit at month end, and a check for $1,600 was erroneously charged by the bank against the account, the correct balance in the bank account at month end is

EXTRA CREDIT: 5.4 points Magnolia Co. had a sheet metal cutter that cost $120,000 on January 5, 2016. This old cutter had an estimated life of nine years and a salvage value of $18,000. On April 3, 2021, the old cutter is exchanged for a new cutter with a fair value of $63,000. The exchange lacked commercial substance. Magnolia also received $12,000 cash. Assume that the last fiscal period ended on December 31, 2020, and that straight-line depreciation is used. Calculate the total gain or loss. Round to the nearest dollar. of $   Prepare all entries that are necessary on April 3, 2021. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Round to the nearest dollar. If the line or entry is not necessary, enter “no entry” and input 0 for the amount.) Account Titles and Explanation   Debit Credit To record depreciation expense                       To record exchange of machinery                                    

Early in 2020, Cow Corporation engaged Bells, Inc. to design and construct a complete modernization of Cow’s manufacturing facility. Construction was begun on April 1, 2020 and was completed on December 31, 2020. Cow made the following payments to Bells, Inc. during 2020: Date Payment 1-Apr-20 $2,950,000 31-Aug-20 2,940,000 31-Dec-20 3,600,000 In order to help finance the construction, Cow issued the following during 2020: $1,836,000 of 10-year, 8% bonds payable, issued at par on May 31, 2020, with interest payable annually on May 31. 400,000 shares of no-par common stock, issued at $9 per share on October 1, 2020. In addition to the 8% bonds payable, the only debt outstanding during 2020 was a $359,000, 10% note payable dated January 1, 2016 and due January 1, 2023, with interest payable annually on January 1. Compute the following. Round to the nearest dollar. Do NOT use a dollar sign in your answer. 1 Weighted-average accumulated expenditures qualifying for capitalization of interest cost $ 2 Avoidable interest incurred during 2020 $ 3 Total amount of interest cost to be capitalized during 2020 $