Belotti would record depletion in 2013 of a 41000 b

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55. Belotti would record depletion in 2013 of: A. \$41,000. B. \$32,800. C. \$30,750. D. \$24,600. Depletion in 2013 = (\$164,000 ÷ 20,000) = \$8.20 per ton x 4,000 = \$32,800 AACSB: Analytic AICPA FN: Measurement Blooms: Apply Difficulty: 2 Medium Learning Objective: 11-03 Calculate the periodic depletion of a natural resource. Spiceland - Chapter 11 #55 Topic: Calculate the periodic depletion of a natural resource 56. Belotti would record depletion in 2014 of: Depletion in 2014 = [(\$164,000 - 32,800) ÷ (20,000)] = \$6.56 per ton x 8,000 = \$52,480 AACSB: Analytic AICPA FN: Measurement Blooms: Apply Difficulty: 3 Hard Learning Objective: 11-03 Calculate the periodic depletion of a natural resource. Learning Objective: 11-05 Explain the appropriate accounting treatment required when a change is made in the service life or residual value of property; plant; and equipment and intangible assets.

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Spiceland - Chapter 11 #56 Topic: Calculate the periodic depletion of a natural resource Topic: Explain the appropriate accounting treatment required when a change is made in the service life or residual value of PP & E and intangible assets 57. The legal life of a patent is: AACSB: Reflective Thinking AICPA BB: Critical Thinking Blooms: Remember Difficulty: 1 Easy Learning Objective: 11-04 Calculate the periodic amortization of an intangible asset. Spiceland - Chapter 11 #57 Topic: Calculate the periodic amortization of an intangible asset 58. Short Corporation purchased Hathaway, Inc., for \$52,000,000. The fair value of all Hathaway's identifiable tangible and intangible assets was \$48,000,000. Short will amortize any goodwill over the maximum number of years allowed. What is the annual amortization of goodwill for this acquisition? Goodwill is not amortized. AACSB: Analytic AICPA FN: Measurement
Blooms: Apply Difficulty: 3 Hard Learning Objective: 11-04 Calculate the periodic amortization of an intangible asset. Spiceland - Chapter 11 #58 Topic: Calculate the periodic amortization of an intangible asset 59. Granite Enterprises acquired a patent from Southern Research Corporation on January 1, 2013, for \$4 million. The patent will be used for 5 years, even though its legal life is 20 years. Rocky Corporation has made a commitment to purchase the patent from Granite for \$200,000 at the end of five years. Compute Granite's patent amortization for 2013, assuming the straight-line method is used. A. \$380,000. B. \$400,000. C. \$760,000. D. \$800,000. The \$200,000 purchase commitment is treated as the residual value of the patent. Amortization is as follows: (\$4,000,000 - 200,000) ÷ 5 years = \$760,000 AACSB: Analytic AICPA FN: Measurement Blooms: Apply Difficulty: 2 Medium Learning Objective: 11-04 Calculate the periodic amortization of an intangible asset. Spiceland - Chapter 11 #59 Topic: Calculate the periodic amortization of an intangible asset

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