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# BE9-8  Calculate partial-year straight-line depreciation.(LO 2) AP />Pandora Pants Company acquires a delivery truck on April 6, 2017, at a cost of \$38,000. The truck is expected to have a residual value of \$6,000 at the end of its four-year life. Pandora uses the nearest month method to pro-rate depreciation expense. Calculate annual depreciation expense for the first and second years using straight-line depreciation, assuming Pandora has a calendar year end.BE9-9    Calculate partial-year diminishing-balance depreciation.(LO 2) APRefer to the data given for Pandora Pants Company given in BE9-8. Assume now that the company has a policy of recording a half-year's depreciation in the year of acquisition and a half-year's depreciation in the year of disposal. Using the double diminishing-balance method, calculate the depreciation expense for each year of the equipment's life.BE9-10  Determine carrying amount and record impairment loss.(LO 3) APCherry Technology purchased equipment on January 4, 2015, for \$250,000. The equipment had an estimated useful life of six years and a residual value of \$10,000. The company has a December 31 year end and uses straight-line depreciation. On December 31, 2017, the company tests for impairment and determines that the equipment's recoverable amount is \$100,000. (a) Calculate the equipment's carrying amount at December 31, 2017 (after recording the annual depreciation). (b) Record the impairment loss.BE9-11  Calculate revised depreciation.(LO 3) APOn January 2, 2017, Ares Enterprises reports balances in the Equipment account of \$32,000 and Accumulated Depreciation—Equipment account of \$9,000. The equipment had an original residual value of \$2,000 and a 10-year useful life. Ares uses straight-line depreciation for equipment. On this date, the company decides that the equipment has a remaining useful life of only four years with the same residual value. Calculate the revised annual depreciation.BE9-12  Record disposal by retirement.(LO 4) APOn January 3, 2017, Ruiz Company retires equipment, which cost \$25,700. No residual value is received. Prepare journal entries to record the transaction if accumulated depreciation is also \$25,700 on this equipment. Ruiz has a December 31 fiscal year end.BE9-13    Record disposal by sale.(LO 4) APWilbur Company sells equipment on March 31, 2017, for \$35,000 cash. The equipment was purchased on January 5, 2014, at a cost of \$86,400, and had an estimated useful life of five years and a residual value of \$2,200. Wilbur Company uses straight-line depreciation for equipment. Adjusting journal entries are made annually at the company's year end, December 31. Prepare the journal entries to (a) update depreciation to March 31, 2017, (b) record the sale of the equipment, and (c) record the sale of the equipment if Wilbur Company received \$29,000 cash for it.BE9-14  Record disposal by exchange of equipment.(LO 4) APDemeter Company exchanges an industrial oven for an industrial freezer. The carrying amount of the industrial oven is \$31,000 (cost \$61,000 less accumulated depreciation \$30,000). The oven's fair value is \$24,000 and cash of \$5,000 is paid by Demeter in the exchange. Prepare the entry to record the exchange.BE9-15  Record depletion for natural resources.(LO 5) APCuono Mining Co. purchased a mine for \$6.5 million that is estimated to have 25 million tonnes of ore and a residual value of \$500,000. In the first year, 5 million tonnes of ore are extracted and 3 million tonnes are sold. Record annual depletion for the first year, ended August 31, 2017.

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