lOMoARcPSD|17200846 MGAB02-Online-Assignment-1-Answers Mgab03 (University of Toronto) Studocu is not sponsored or endorsed by any college or university Downloaded by Majiro Sainti (majiroph@gmail.com) lOMoARcPSD|17200846 MGAB02Onl i neAs s i gnme nt1Ans we r s : 1.Da l t onCompa n ypur c has e damac hi nef or$26, 000,t e r ms1/ 10,n/ 60,FOBs hi ppi n gpoi nt . Thes e l l e rpr e pa i dt hef r e i ghtc har g e s ,$430,a nds e ntas e c ondi n v oi c ef ort hef r e i ght .Da l t on t ooka d v a nt a g eoft hedi s c ountont hefir s ti n v oi c e ,butt hedi s c ountwa sno ta v a i l a bl eont he f r e i ghti n v oi c e .Thema c hi ner e q ui r e das pe c i als t e e lmount i ngandpo we rc onne c t i ons c os t i ng$965,a nda no t he r$630waspai dt oas s e mbl et hemac hi nea ndg e ti ti nt oope r a t i on. I nmo vi n gt hema c hi neont oi t ss t e e lmount i n g ,i twa sdr oppe da ndda ma g e d .Ther e pa i r sc os t $360.Al s o ,$290ofr a wma t e r i al swe r eus e di nc a l i br a t i n g( a d j us t i n g )t hema c hi nes ot ha ti t woul dpr oduc et hec or r e c tq ua l i t ypr oduc t .Thea d j us t me nt swe r enor ma lf ort hi st ypeof ma c hi nea ndwe r eno tt her e s ul toft heda ma g e .Ho we v e r ,t hei t e mspr oduc e dwhi l et he a d j us t me nt swe r ebe i n gma dewe r eno ts a l e a bl e .Pr e pa r eac a l c ul a t i ont os ho wt hec os toft hi s ma c hi nef ora c c ount i n gpur pos e s .( As s umeDa l t onCompa n yp a y sf ort hepur c ha s ewi t hi nt he di s c ountpe r i od . )( Ne g a t i v ea ns we rs houl dbei ndi c a t e db yami nuss i gn. ) I n v oi c ec os t $2, 600 Di s c ounte a r ne d ( $260)* Fr e i ghtc os t s $430 St e e lmount i n g $965 Ra wma t e r i a l sf ort e s t i n g $290 As s e mbl y $630 To t alac qui s i t i onc os t s $28, 055 *Di s c ounte ar ne d:$26, 000x1% =$260 2.OnApr i l12,2017,Pr i s mLt d . ,ac a me r al e nsma nuf a c t ur e r ,pa i dc a s hof$554, 600f orr e a l e s t a t epl us$29, 700c a s hi nc l os i n gc os t s .Ther e a le s t a t ei nc l ude dl a nda ppr a i s e da t$232, 830; l a ndi mpr o v e me nt sa ppr a i s e da t$65, 670;a ndabui l di n ga ppr a i s e da t$298, 500. St e p1:Cal c ul a t ee ac has s e t ’ spe r c e ntofmar ke tv al ue( As s e tmar ke tv al ue/t o t al mar ke tv al ueofal las s e t s ) As s e t Appr ai s al Mar ke tVal ue % ofMV La nd $232, 830 /$597, 000= 39% La ndI mpr o v e me nt s $65, 670 /$597, 000= 11% Bui l di n g $298, 500 /$597, 000= 50% $597, 000 100% To t a l St e p2:Cal c ul a t et hec os tofe ac has s e t( t o t alpr i c epai df oral las s e t sx% ofmar ke t v al ue ) As s e t % ofMV Pur c has ePr i c e * As s e tCos t La nd 39% x $584, 300 $227, 877 La ndI mpr o v e me nt s 11% x $584, 300 $64, 273 Bui l di n g 50% x $584, 300 $292, 150 100% $584, 300 To t a l Downloaded by Majiro Sainti (majiroph@gmail.com) lOMoARcPSD|17200846 *Pur c ha s epr i c e =$554, 600+$29, 700=$584, 300 St e p3:Thej our nale nt r yt or e c or dt hi spur c has ef orc as hwoul dbe : Da t e Ac c ount De bi t Cr e di t Apr i l12,2017 La nd 227, 877 La ndI mpr o v e me nt s 64, 273 Bui l di n g 292, 150 Ca s h 584, 30 0 3.J e s s i c aGr e wa lde c i de dt oope naf oodt r uc kbu s i ne s s ,t heSa mos aSha c k.Shee nc ount e r e dt he f ol l o wi n gt r a ns a c t i onsi nma na gi n ghe re q ui pme nto v e rt hefir s t2y e a r sofhe rbus i ne s s . Apr i l1,2015 Pur c ha s e df oodt r uc kf or$81, 000a ndpai d$8, 100t oha v eac omme r c i al o v e ni ns t al l e d.Ot he rc os t st ha ts hei nc ur r e da r e$8, 100f ori ns ur anc eont he t r uc kf ort hefir s ty e a r ,a nd$3, 000t oha v et het r uc kpai nt e dwi t hhe r Sa mos aSha c kl o g o .J e s s i c ae s t i ma t e st ha tt het r uc kwoul dl a s t5y e a r sa nd ha v ea$6, 000r e s i dua lv a l ue .Theo v e ni sa l s oe xpe c t e dt ol a s t5y e a r sa nd ha v ea$600r e s i dua lv a l ue . Oc t obe r1,2015 Theo v e nbr o k edo wna ndc os t$3, 000t or e pai r . De c e mbe r31,2015 Re c or de dt hea d j us t i n ge nt r yf orde pr e c i a t i ona ndi ns u r a nc e . Apr i l1,2016 Re pl a c e da l loft het i r e swi t hal l s e as ont i r e sf or$3, 000a ndpa i da no t he r y e a rofi ns ur anc ef or$8, 100. De c e mbe r31,2016 Re c or de dt hea d j us t i n ge nt r yf orde pr e c i a t i on,a ndi ns u r a nc e . Ma r c h31,2017 J e s s i c awa se xha us t e df r omt hef oodt r uc kbus i ne s s , a ndde c i de dt og oba c kt o s c hoola nds e l lt hef oodt r uc kt ohe rf r i e ndMa r k.Hepa i dhe r$33, 000f or t het r uc ka ndo v e n,whi c hi nc l ude d$600f ort heo v e nc ompone nt . No t e :Thec ompa n yc a l c ul a t e sde pr e c i a t i onu s i n gt hes t r a i gh t l i neme t hodt ot hene a r e s tmont h. Re qui r e d:Re c or da l lt hee n t r i e sf ort he2y e a r st ha tJ e s s i c ao wne dt het r uc k,i nc l udi n gt he di s pos a loft het r uc ka ndo v e n. St e p1:Re c or dt hepur c has eoff oodt r uc k,o v e nandi ns ur a nc e . Da t e Ge ne r alJour nal De bi t Cr e di t Apr i l01,2015 FoodTr uc k $84, 000* Ov e n $8, 100 Pr e pa i dI n s ur a nc e $8, 100 Ca s h $584, 300 *Foodt r uc k:$81, 000+$3, 000=$84, 000 Downloaded by Majiro Sainti (majiroph@gmail.com) lOMoARcPSD|17200846 St e p2:Re c or dt her e pai r sf ort het r uc k. Da t e Ge ne r alJour nal De bi t Cr e di t Oc t obe r01,2015 Re pa i r sExpe ns e $3, 000 Ca s h $3, 000 St e p3:Re c or di ns ur a nc ee xpe ns eof2015f or9mont hs . Da t e Ge ne r alJour nal De bi t Cr e di t De c e mbe r31,2015 I n s ur a nc eExpe ns e $6, 075* Pr e pa i dI n s ur a nc e $6, 075* *I ns ur anc eExpe ns e /Pr e pai dI ns ur anc e : $8, 100/12 =$675 $675x9=$6, 075 St e p4:Re c or dt hede pr e c i a t i onoft het r uc k. Da t e Ge ne r alJour nal De bi t Cr e di t De c e mbe r31,2015 De pr e c i a t i onExpe ns e ,Tr uc k $11, 700* Ac c umul a t e dDe pr e c i a t i on,Tr uc k $11, 700* *Tr uc kDe pr e c i a t i onExpe ns e /Ac c umul a t e dDe pr e c i a t i on: ( $84, 000-$6, 000)/5y e a r s =$15, 600 $15, 600/12mont hs =$1, 300 $1, 300x9mont hs =$11, 700 St e p5:Re c or dt hede pr e c i a t i onoft heo v e n. Da t e Ge ne r alJour nal De bi t Cr e di t De c e mbe r31,2015 De pr e c i a t i onExpe ns e ,Ov e n $1, 125* Ac c umul a t e dDe pr e c i a t i on,Ov e n $1, 125* *Ov e nDe pr e c i a t i onExpe ns e /Ac c umul a t e dDe pr e c i a t i on: ( $8, 100-$600)/5y e a r s =$1, 500 $1, 500/12mont hs =$125 $125x9mont hs =$1, 125 St e p6:Re c or dt hepur c has eoft i r e sandi ns ur anc ef ort hey e ar . Da t e Ge ne r alJour nal De bi t Cr e di t Apr i l01,2016 Pr e pa i dI n s ur a nc e $8, 100 Re pa i r sExpe ns e $3, 000 Downloaded by Majiro Sainti (majiroph@gmail.com) lOMoARcPSD|17200846 Ca s h $11, 100 St e p7:Re c or dt he1y e arofi ns ur anc ee xpe ns e . Da t e Ge ne r alJour nal De bi t Cr e di t De c e mbe r31,2016 I n s ur a nc eExpe ns e $8, 100 Pr e pa i dI n s ur a nc e $8, 100 St e p8:Re c or dt hede pr e c i a t i onoft het r uc k. Da t e Ge ne r alJour nal De bi t Cr e di t De c e mbe r31,2016 De pr e c i a t i onExpe ns e ,Tr uc k $15, 600* Ac c umul a t e dDe pr e c i a t i on,Tr uc k $15, 600 * *Tr uc kDe pr e c i a t i onExpe ns e /Ac c umul a t e dDe pr e c i a t i on: ( $84, 000-$6, 000)/5y e a r s =$15, 600 St e p9:Re c or dt hede pr e c i a t i onoft heo v e n. Da t e Ge ne r alJour nal De bi t Cr e di t De c e mbe r31,2016 De pr e c i a t i onExpe ns e ,Ov e n $1, 500* Ac c umul a t e dDe pr e c i a t i on,Ov e n $1, 500* *Ov e nDe pr e c i a t i onExpe ns e /Ac c umul a t e dDe pr e c i a t i on: ( $8, 100-$600)/5y e a r s =$1, 500 St e p10:Re c or dt hepar t i alde pr e c i a t i onoft het r uc k. Da t e Ge ne r alJour nal De bi t Cr e di t Ma r c h31,2017 De pr e c i a t i onExpe ns e ,Tr uc k $3, 900* Ac c umul a t e dDe pr e c i a t i on,Tr uc k $3, 900 * *Tr uc kDe pr e c i a t i onExpe ns e /Ac c umul a t e dDe pr e c i a t i on: ( $84, 000-$6, 000)/5y e a r s =$15, 600 $15, 600/12mont hs =$1, 300 $1, 300x3mont hs =$3, 900 St e p11:Re c or dt hepar t i alde pr e c i a t i onoft heo v e n. Da t e Ge ne r alJour nal De bi t Ma r c h31,2017 De pr e c i a t i onExpe ns e ,Ov e n $375* Ac c umul a t e dDe pr e c i a t i on,Ov e n *Ov e nDe pr e c i a t i onExpe ns e /Ac c umul a t e dDe pr e c i a t i on: ( $8, 100-$600)/5y e a r s =$1, 500 $1, 500/12mont hs =$125 $125x3mont hs =$375 Downloaded by Majiro Sainti (majiroph@gmail.com) Cr e di t $375* lOMoARcPSD|17200846 St e p12:Re c or dt hel os sont hes al eoft het r uc k. Da t e Ge ne r alJour nal Ma r c h31,2017 Ca s h Los sonDi s pos a l De bi t $33, 000 $24, 900 ** * $31, 200* $3, 000** Cr e di t Ac c umul a t e dDe pr e c i a t i on,Tr uc k Ac c umul a t e dDe pr e c i a t i on,Ov e n FoodTr uc k $84, 000 Ov e n $8, 100 *Tr uc kAc c umul a t e dDe pr e c i a t i on: **Ov e nAc c umul a t e dDe pr e c i a t i on: ( $84, 000-$6, 000)/5y e a r s =$15, 600 ( $8, 100-$600)/5y e a r s =$1, 500 $15, 600/12mont hs =$1, 300 $1, 500/12mont hs =$125 $1, 300x24mont hs =$31, 200 $125x24mont hs =$3, 000 ***Los so nDi s pos al :Or i gi na lPur c ha s ePr i c e -Al lAc c umul a t e dDe pr e c i a t i onSa l e sPr i c e ( $84, 000+$8, 100) -( $33, 000+$31, 200) -$3, 000=$24, 900 4.TheDe c e mbe r31,2017,a d j us t e dt r i a lba l a nc eofMa r i t i meMa nuf a c t ur i n gs ho we dt he f ol l o wi n gi nf or ma t i on: Ma c hi ne r y $680, 000 Ac c umul a t e dde pr e c i a t i on,ma c hi ne r y1 $324, 300 Offic ef ur ni t ur e $104, 600 2 Ac c umul a t e dde pr e c i a t i on,offic ef ur ni t ur e 1 Re ma i ni n gus e f ull i f ef oury e a r s ;e s t i ma t e dr e s i dua l$60, 000 2 Re ma i ni n gus e f ull i f efiv ey e a r s ;e s t i ma t e dr e s i dua l$12, 700 $57, 100 Ea r l yi n2018,t hec ompa n yma deade c i s i ont os t opma ki n gt hei t e mspr oduc e db yt he ma c hi ne r ya ndbu yt hei t e msi ns t e a d .Asar e s ul t ,t her e mai ni ngus e f ull i f ewasde c r e as e dt o Downloaded by Majiro Sainti (majiroph@gmail.com) lOMoARcPSD|17200846 t woy e ar sa ndt her e s i dualv al uewasi nc r e as e dt oat o t alof$140, 00 0.Att heb e gi nni n gof 2018,i twa sde t e r mi ne dt ha tt hee s t i ma t e dl i f eoft heo ffic ef ur ni t ur es houl dber e duc e dby t woy e ar s( 52=3y e ar s )a ndt her e s i dualv al uede c r e as e dby$9, 000( $12, 700-$9, 000= $3700) .Thec ompa n yc a l c ul a t e sde pr e c i a t i onus i n gt hes t r a i ght l i neme t hodt ot hen e a r e s t mont h. Re qui r e d:Pr e pa r et hee nt r i e st or e c or dde pr e c i a t i onont hema c hi ne r ya ndoffic ef ur ni t ur e f ort hey e a re nde dDe c e mbe r31,2018. St e p1:Re c or dt hede pr e c i a t i onont hemac hi ne r yf ort hey e are nde dDe c .31,2018. Da t e Ge ne r alJour nal De bi t Cr e di t De c .31,2018 De pr e c i a t i onExpe ns e ,Ma c hi ne $107, 850 * Ac c umul a t e dDe pr e c i a t i on,Ma c hi ne $107, 850 * *Car r yi ngamount( Cos t -Ac c umul a t e dDe pr e c i a t i on) :$680, 000-$324, 300 =$355, 700 Mac hi neDe pr e c i a t i onExpe ns e /Ac c umul a t e dDe pr e c i a t i on: ( Ca r r yi n gAmoun t -Ne wRe s i dua lVa l ue )/Upda t e dUs e f ulLi f e : ( $355, 700-$140, 000)/2y e a r s =$107, 850 St e p2:Re c or dt hede pr e c i a t i onont heo ffic ef ur ni t ur ef ort hey e are nde dDe c .31, 2018. Da t e Ge ne r alJour nal De bi t Cr e di t De c .31,2018 De pr e c i a t i onExpe ns e ,Offic eFur ni t ur e $ 14, 600* Ac c umul a t e dDe pr e c i a t i on,Offic eFur ni t ur e $14 , 600* *Car r yi ngamount( Cos t -Ac c umul a t e dDe pr e c i a t i on) :$104, 600-$57, 100=$47, 500 Offic eFur ni t ur eDe pr e c i a t i onExpe ns e /Ac c umul a t e dDe pr e c i a t i on: ( Ca r r yi n gAmoun t -Ne wRe s i dua lVa l ue )/Upda t e dUs e f ulLi f e : ( $47, 500-$3, 700)/3y e a r s =$14, 600 5.Ze ph yrMi ne r a l sc ompl e t e dt hef ol l o wi n gt r a ns a c t i on si n v ol vi n gma c hi ne r y . Ma c hi neNo .1550wa spur c ha s e df orc a s honApr i l1, 2017,a ta ni ns t al l e dc os tof$75, 000. I t sus e f ull i f ewase s t i ma t e dt obes i xy e ar swi t ha$6, 000t r ade i nv al ue .St r a i ght l i ne de pr e c i a t i onwa sr e c o r de df ort hema c hi nea tt hee n d sof2017,2018,a nd2019.OnMa r c h 29,2020,i twa st r a de df orMa c hi neNo .1795,wi t ha ni ns t al l e dc as hpr i c eof$69, 000.A t r ade i nal l o wanc eof$30, 910wa sr e c e i v e df orMa c hi neNo .1550,a ndt heba l a nc ewa spa i d i nc a s h.Thef a i rv a l ue sofMa c hi neNo .1550a ndMa c hi neNo .1795c oul dno tbe de t e r mi ne d . Ma c hi neNo .1795’ sl i f ewaspr e di c t e dt obef oury e ar swi t hat r ade i nv al ueof$8, 900. Doubl ede c l i ni n g ba l a nc ede pr e c i a t i onont hi sma c hi newa sr e c or de de a c hDe c e mbe r31.On Oc t obe r2,2021,i twa st r a de df orMa c hi neNo .BT311,whi c hha da ni ns t al l e dc a s hpr i c eof $493, 000,t hema c hi ne ’ sf a i rv a l ue .At r ade i nal l o wanc eof$10, 000wa sr e c e i v e df or Downloaded by Majiro Sainti (majiroph@gmail.com) lOMoARcPSD|17200846 Ma c hi neNo .1795,a ndt heba l a nc ewa spa i di nc a s h. I twa se s t i ma t e dt ha tMac hi neNo.BT311woul dpr oduc e200, 000uni t sofpr o duc tdur i ng i t sfiv e y e arus e f ull i f e ,a f t e rwhi c hi twoul dha v ea$15, 000t r ade i nv al ue .Uni t s of pr oduc t i onde pr e c i a t i onwa sr e c o r de df ort hema c hi nef or2021,ape r i odi nwhi c hi t pr oduc e d31, 000uni t sofpr oduc t .Be t we e nJ a nua r y1,2022,a ndAu gus t21,2024,t he mac hi nepr o duc e d106, 000mor euni t s .OnAu gus t21,2024,i twa ss ol df or$81, 900. Re qui r e d:Pr e pa r ej our na le nt r i e st or e c o r d a )Thede pr e c i a t i one xpe ns er e c or de dt ot hene a r e s twhol emont hont hefir s tDe c e mbe r31 ofe a c hma c hi ne ’ sl i f e . St e p1:Re c or dde pr e c i a t i onf orMac hi ne1550. Da t e Ge ne r alJour nal De bi t Cr e di t Ma r c h31,2017 De pr e c i a t i onExpe ns e ,Ma c hi ne1550 $8, 625* Ac c umul a t e dDe pr e c i a t i on,Ma c hi ne1550 $8, 625* *Mac hi ne1550De pr e c i a t i onExpe ns e /Ac c umul a t e dDe pr e c i a t i on: ( $75, 000-$6, 000)/6y e a r s =$11, 500 $34, 500/12mont hs =$958. 33 $958. 33x9mont hs =$8, 625 St e p2:Re c or dde pr e c i a t i onf orMac hi ne1795. Da t e Ge ne r alJour nal De bi t Cr e di t Ma r c h31,2017 De pr e c i a t i onExpe ns e ,Ma c hi ne1795 $29, 4715* Ac c umul a t e dDe pr e c i a t i on,Ma c hi ne1795 $29, 471* *Mac hi ne1795De pr e c i a t i onExpe ns e /Ac c umul a t e dDe pr e c i a t i on: $78, 590x2/ 4=$39, 295 $39, 295/12mont hs =$3, 274. 58 $3, 274. 58x9mont hs =$29, 471. 25 St e p3:Re c or dde pr e c i a t i onf orMac hi neBT311. Da t e Ge ne r alJour nal De bi t Cr e di t De c .31,2021 De pr e c i a t i onExpe ns e ,Ma c hi neBT311 $74, 090* Ac c umul a t e dDe pr e c i a t i on,Ma c hi neBT311 $74, 090* *Mac hi neBT311De pr e c i a t i onEx pe ns e /Ac c umul a t e dDe pr e c i a t i on: [ ( or i gi na lc os t s a l v a g ev a l ue ) / e s t i ma t e dpr oduc t i onc a pa bi l i t y]xuni t spr oduc e dt ha ty e a r [ ( $439, 000-$15, 000) /200, 000uni t s ]x31, 000uni t s=$74, 090 b)Thepur c ha s e / e x c ha n g e / di s pos a lofe a c hma c hi ne . St e p4:Re c or dpur c has eofMac hi ne1550. Da t e Ge ne r alJour nal Apr i l01,2017 Ma c hi ne1550 Ca s h Downloaded by Majiro Sainti (majiroph@gmail.com) De bi t $75, 000 Cr e di t $75, 000 lOMoARcPSD|17200846 St e p5:Re c or de x c hang eofMac hi ne1550. Da t e Ge ne r alJour nal Apr i l01,2017 Ma c hi ne1795 Ac c umul a t e dDe pr e c i a t i on,Ma c hi ne1550 Ca s h Ma c hi ne1550 *Mac hi ne1550Ac c umul a t e dDe pr e c i a t i on: ( $75, 000-$6, 000) /6y e a r s =$11, 500 $11, 500x3y e a r s =$34, 500 **Cas h:$69, 000-$30, 910=$38, 090 ***Mac hi ne1795:( $75, 000+$38, 090) -$34, 500=$78, 590 St e p6:Re c or de x c hang eofMac hi ne1795. Da t e Ge ne r alJour nal Oc t .02,2021 Ma c hi neBT311 Ac c umul a t e dDe pr e c i a t i on,Ma c hi ne1795 De bi t $78, 590** * $34, 500* $38, 090** $75, 000 De bi t $493, 000 $47, 891** * $20, 699 ** Los sondi s pos a l Ma c hi ne1795 Ca s h *Cas h:$493, 000-$10, 000=$$483, 000 **Los so ndi s pos al :( 483, 000 +$78, 590) -( $493, 000+$47, 891)=$20, 699 ***Mac hi ne1795Ac c umul a t e dDe pr e c i a t i on: [ ( 78, 590-$29, 471. 25)x2/ 4] /12mont hs =$2, 046. 61 $2, 046. 61x9mont hs =$18, 419. 53 $18, 419. 53+$29, 471. 25=$47, 890. 78 St e p7:Re c or ds al eofMac hi neBT311 Da t e Ge ne r alJour nal Oc t .21,2024 Ca s h Ac c umul a t e dDe pr e c i a t i on,Ma c hi neBT311 Los sondi s pos a l Ma c hi neBT311 *Mac hi neBT311Ac c umul a t e dDe pr e c i a t i on: Downloaded by Majiro Sainti (majiroph@gmail.com) Cr e di t De bi t $81, 900 $327, 430 * $83, 670 ** Cr e di t $78, 590 $483, 000* Cr e di t $493, 000 lOMoARcPSD|17200846 [ ( or i gi na lc os t s a l v a g ev a l ue ) / e s t i ma t e dpr oduc t i onc a pa bi l i t y]xuni t spr oduc e dt ha ty e a r [ ( $439, 000-$15, 000) /200, 000uni t s ]x( 31, 000uni t s +106, 000uni t s )=$327, 430 **Los so ndi s pos al :$493, 000-$81, 900-$327, 430 =$83, 670 6.Oc e a nFi s he r sLt dha da22f oo tfis hi n gboa twi t ha ni nboa r dmo t ort ha twa spur c has e do n Apr i l9,2009,f or$86, 500.ThePPESubl e d g e rs ho wst hef ol l o wi n gi nf or ma t i o nr e g a r di n g t heboa t : Fi s hi ngBoa t–22Foo twi t hI nboar dMo t or : Compone nt Da t eofPur c ha s e De pr e c .Me t hod Cos t Es t .Re s i dua l Es t .Li f e $25, 500 $6, 000 15y e ar s Fi be r gl a s sbod y Apr .9/ 09 SL $61, 000 $0 10y e ar s Mo t or Apr .9/ 09 SL $86, 500 OnJune27,2017,$67, 000c as hwaspai df orane wmo t ort or e pl a c et heol don e ,whi c h wa ss c r a ppe d .Thene wmo t orha dane s t i ma t e dus e f ull i f eof12y e ar sa ndar e s i dualv al ue of$4, 000.Ea r l yi n2017,i twa sde t e r mi ne dt ha tt heus e f ull i f eoft heboa t ' sfibe r gl as sbody s ho ul dbeadj us t e dt oat o t alof20y e ar swi t hnoc hang ei nt her e s i dualv al ue . Re qui r e d:Re c or dt hea ppr opr i a t ee nt r i e sr e g a r di n gt hepur c h a s eoft her e pl a c e me ntmo t oron J une27,2017. St e p1:Re c or dt hede pr e c i a t i oni n2017r e g ar di ngt hemo t orbe i ngr e pl ac e d. Da t e Ge ne r alJour nal De bi t Cr e di t J une27,2017 De pr e c i a t i onExpe ns e ,Boa t -Mo t or $3, 050* Ac c umul a t e dDe pr e c i a t i on,Boa t -Mo t or $3, 050 * *Boa t Mot orDe pr e c i a t i onExpe ns e /Ac c umul a t e dDe pr e c i a t i on: ( $61, 000-$0)/10y e a r s =$6, 100 $6, 100/12mont hs =$508. 33 $508. 33x6mont hs =$3, 050 St e p2:Re c or dt her e pl ac e me ntoft hemo t or . Da t e Ge ne r alJour nal J une27,2017 Boa t -Mo t or( Ne w) Los sondi s pos a l Ac c umul a t e dDe pr e c i a t i on,Boa t -Mo t or Ca s h Boa t -Mo t or( Ol d ) *Boa t Mot orAc c umul a t e dDe pr e c i a t i on: ( $61, 000-$0)/10y e a r s =$6, 100 $6, 100/12mont hs =$508. 33 $508. 33x99mont hs =$50, 325 Downloaded by Majiro Sainti (majiroph@gmail.com) De bi t $67, 000 $10, 675* * $50, 325 * Cr e di t $67, 000 $61, 000 lOMoARcPSD|17200846 **Los so nDi s pos al :Or i gi na lPur c ha s ePr i c e -Al lAc c umul a t e dDe pr e c i a t i onSa l e sPr i c e $61, 000-$50, 325-$0=$10, 675 St e p3:Re c or dt her e vi s e dde pr e c i a t i onf or2017ont heboa t( boa tbodypl usmo t or ) . Da t e Ge ne r alJour nal De bi t Cr e di t De c .31,2017 De pr e c i a t i onExpe ns e ,Boa t $3, 394 * Ac c umul a t e dDe pr e c i a t i on,Boa t $3, 394* Fi be r gl as sDe pr e c i a t i onupt o2017: ( $25, 500-$6, 000)/15y e a r s =$1, 300 $1, 300/12mont hs =$108. 33 $108. 33x93mont hs( or7y e a r sa nd9mont hs )=$10, 075 Car r yi ngamount :$25, 500-$10, 075=$15, 425 Fi be r gl as sDe pr e c i a t i onf r om 2017: ( $15, 425-$6, 000)/( 20y e a r s -7y e a r s -9/ 12y e a r s )=$769. 39 Boa t Mot or( Ol d)De pr e c i a t i on: ( $61, 000-$0)/10y e a r s =$6, 100 $6, 100/12mont hs =$508. 33 $508. 33x6mont hs =$3, 050 Boa t Mot or( Ne w)De pr e c i a t i on: ( $67, 000-$4, 000)/12y e a r s =$5, 250 $5, 250/12mont hs =$437. 50 $437. 50x6mont hs =$2, 625 *Re vi s e dBoa tDe pr e c i a t i onf or2017:$769. 39+$2, 625=$3, 394. 39 St e p4:Cal c ul a t et o t alde pr e c i a t i ont ake nont hefis hi ngboa t( bo dypl usmo t or )f or t hec ompany ’ sy e are nde dDe c e mbe r31,2017. To t al2017De pr e c i a t i on:$769. 39 +$3, 050+$2, 625=$6, 444. 39 7.Kr e i s e rCompa n yha dt hr e ei nt a n gi bl ea s s e t sa tt hee ndof2014( e ndoft hea c c ount i n gy e a r ) : a .Apa t e ntwa spur c ha s e df r om J .Mi l l e ronJ a nua r y1,2014,f orac a s hc o s tof$5, 550.Whe npur c ha s e d,t he pa t e ntha da ne s t i ma t e dl i f eof15y e ar s . b .At r ade mar kwa sr e gi s t e r e dwi t ht hef e de r a lg o v e r nme ntf or$26, 000.Ma na g e me nte s t i ma t e dt ha tt he t r a de ma r kc oul dbewor t ha smuc ha s$200, 000be c a us ei tha sa ni nde fini t el i f e . c .Comput e rl i c e ns i ngr i ght swe r epur c ha s e donJ a nua r y1,2014,f or$57, 600.Ther i ght sa r ee xpe c t e dt oha v e Downloaded by Majiro Sainti (majiroph@gmail.com) lOMoARcPSD|17200846 af our y e arus e f ull i f et ot hec ompa n y . St e p1:Comput et hea c q ui s i t i onc os tofe a c hi nt a n gi bl ea s s e t . Ac qui s i t i onCos t : Pa t e nt $5, 550 Tr a de ma r k $26, 00 0 Li c e ns i n gRi ght s $57, 60 0 St e p2:Comput et hea mor t i z a t i onofe a c hi nt a n gi bl ef ort hey e a re nde dDe c e mbe r31,2014. Amor t i z a t i onEx pe ns e : Pa t e nt $370 * Tr a de ma r k $0 ** Li c e ns i n gRi ght s $14, 400** * *Pa t e ntAmor t i z a t i onExpe ns e :$5, 550/15y e a r s =$370 **Tr a de mar kAmor t i z a t i onExpe ns e :Tr a de ma r kha snoa mor t i z a t i ons i nc ei tha s i nde fini t el i f e =$0 ***Li c e ns i ngRi ght sAmor t i z a t i onExpe ns e :$57, 600/4y e a r s =$14, 400 St e p3:Sho who wt he s ea s s e t sa nda n yr e l a t e de xpe ns e ss hou l dber e por t e dont heba l a nc e s he e ta ndi nc omes t a t e me ntf or2014. Par t i alI nc omeSt a t e me ntf or2014: Amor t i z a t i onExpe ns e $14, 770 * *Amor t i z a t i onEx pe ns e :$370+$14, 400=$14, 770 Par t i alBal anc eShe e ta tDe c e mbe r31,2014: I nt a n gi bl e s : Pa t e nt ,ne t $5, 180* Tr a de ma r k $26, 000 Li c e ns i n gr i gh t s ,ne t $43, 200 ** To t a li nt a n gi bl e s $74, 380 *** *Ne tPa t e nt :$5, 550-$370 =$5, 180 **Ne tLi c e ns i ngRi ght s :$57, 600-$14, 400 =$43, 200 ***To t alI nt angi bl e s :$5, 180 +$26, 000+$43, 200=$74, 380 Downloaded by Majiro Sainti (majiroph@gmail.com)