HW6

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Unformatted text preview: s and liabilities ($4,500,000 mark et v alue of rec orded as s ets and liabilities and $300,000 for the patent). If s o, Giant Bak ery would rec ord $200,000 of goodwill on the date of purc has e (i.e., the ex c es s of the $5,000,000 purc has e pric e ov er the $4,800,000 fair v alue of identifiable as s ets and liabilities ). The $110,000 differenc e in goodwill (Eliz abeth’s $310,000 es timated v alue of goodwill les s ac tual goodwill of $200,000) prov ides potential for Eliz abeth’s management to negotiate a higher purc has e pric e. 4. awar d: 0.20 out of 0.20 points E8-15 Inferring Asset Age and Recording Accidental Loss on a Long-Lived Asset (Straight-Line Depreciation) L O3 , 5 On J anuary 1, 2012, the rec ords of Seward Corporation s howed the following regarding a truc k : Equipment (es timated res idual v alue, $8,700) Ac c umulated deprec iation (s traight­line, three y ears ) $ 27,600 8,100 On Dec ember 31, 2012, the deliv ery truc k was a total los s as the res ult of an ac c ident. Required: 1. Bas ed on the data giv en, c ompute the es timated us eful life of the truc k . Es timated us eful life 7 y ears 2. Prepare all journal entries with res pec t to the truc k on Dec ember 31, 2012. (Om it the "$" sign in your response.) Date General J ournal Dec . 31 2012 Depreciation expense Accum ulated depreciation Dec . 31 2012 Accum ulated depreciation Loss on disposal of truck Truck Debit 2,700 10,800 16,800 Credit 2,700 27,600 Worksheet Learning Objective: 08­03 Apply various cost allocation methods as assets are held and used over time. E8­15 Inferring Asset Age and Learning Objective: 08­05 Analyze the Recording Accidental Loss on a Long­ disposal of property, plant, and Lived Asset (Straight­Line Depreciation) equipment. LO3, 5 E8-15 Inferring Asset Age and Recording Accidental Loss on a Long-Lived Asset (Straight-Line Depreciation) L O3 , 5 On J anuary 1, 2012, the rec ords of Seward Corporation s howed the following regarding a truc k : Equipm...
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This homework help was uploaded on 02/23/2014 for the course BUSE 30000 taught by Professor N/a during the Winter '12 term at UChicago.

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