Accounting Chapter Ten Homework

In: Business and Management

Submitted By gracielyn
Words 285
Pages 2
E10-2
1. Factory Machinery
2. Truck
3. Factory Machinery
4. Land
5. Prepaid Insurance
6. Land Improvements
7. Land Improvements
8. Land
9. Building E10-4
1. False; Depreciation is a process of cost allocation.
2. True
3. False; Book value differs from fair value.
4. False; Depreciation applies to three classes of plant assets: land improvements, buildings, & equipment.
5. False; Depreciation does not apply to land.
6. True
7. False; Recognizing depreciation on an assets doesn't result in an accumulation of cash for replacement of the asset.
8.True
9. False; Deprecation expense and accumulated depreciation are reported on the balance sheet.
10. False; Three factors affect computation of deprecation: cost, useful life, and salvage value. E10-7
a.
Loss on Sale of Equipment $30,000
Accumulated Deprecation - Equipment 20000
Equipment 50000
b.
Cash $37,000
Accumulated Deprecation - Equipment 20000
Equipment 50000
Gain on Sale of Equipment 7000
c.
Cash $18,000
Loss on Sale of Equipment 12000
Accumulated Deprecation – Equipment 20000
Equipment 50000 P10-4A
a.
Patent 46800
Cash 46800
Research and Development Expense 210000
Cash 210000
Patents 20000
Cash 20000
Advertising Expense 40000
Cash 40000
Copyright 200000
Cash 200000
b.
Patent Amortization 12200
Patent 12200
Copyright Amortization 7600
Copyright 7600
c.
Intangible Assets
Patents $126,800
Less: Amortization 18200
Net Patents $108,600
Copyrights $236,000.00
Less: Amortization 32800
Net Copyrights $203,200.00 P10-6A
a. Danner Corporation London Corporation…...

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