• Get now! ACC 422 All Week 4 Assignments – Individual Wiley Plus Assignment Link to ACC 422 All Week 4 Assignments – Individual Wiley Plus Assignment Service Manual ACC 422 All Week 4 Assignments – Individual Wiley Plus Assignment download
  • ACC 422 Week 4 WileyPlus Assignment - Exercises ACC422 Week 4 E11-4 P11-6 E12-16 P12-1 Intermediate Acc. 13e E11-4 (Depreciation Computations—Five Methods) Wenner Furnace Corp. purchased machinery for $279,000 on May 1, 2010. It is estimated that it will have a useful life of 10 years, salvage value of $15,000, production of 240,000 units, and working hours of 25,000. During 2011 Wenner Corp. uses the machinery for 2,650 hours, and the machinery produces 25,500 units. Instructions From the information given, compute the depreciation charge for 2011 under each of the following methods. (Round to the nearest dollar.) (a) Straight-line. (b) Units-of-output. (c) Working hours. (d) Sum-of-the-years’-digits. (e) Double-declining-balance. P11-6 (Depletion, Timber, and Extraordinary Loss) Conan O’Brien Logging and Lumber Company owns 3,000 acres of timberland on the north side of Mount Leno, which was purchased in 1998 at a cost of $550 per acre. In 2010, O’Brien began selectively logging this timber tract. In May of 2010, Mount Leno erupted, burying the timberland of O’Brien under a foot of ash. All of the timber on the O’Brien tract was downed. In addition, the logging roads, built at a cost of $150,000, were destroyed, as well as the logging equipment, with a net book value of $300,000. At the time of the eruption, O’Brien had logged 20% of the estimated 500,000 board feet of timber. Prior to the eruption, O’Brien estimated the land to have a value of $200 per acre after the timber was harvested. O’Brien includes the logging roads in the depletion base. O’Brien estimates it will take 3 years to salvage the downed timber at a cost of $700,000. The timber can be sold for pulp wood at an estimated price of $3 per board foot. The value of the land is unknown, but must be considered nominal due to future uncertainties. Instructions (a) Determine the depletion cost per board foot for the timber harvested prior to the eruption of Mount (b) Prepare the journal entry to record the depletion prior to the eruption. (c) If this tract represents approximately half of the timber holdings of O’Brien, determine the amount of the extraordinary loss due to the eruption of Mount Leno for the year ended December 31, 2010. E12-16 (Accounting for R&D Costs) Margaret Avery Company from time to time embarks on a research program when a special project seems to offer possibilities. In 2009 the company expends $325,000 on a research project, but by the end of 2009 it is impossible to determine whether any benefit will be derived from it. Instructions (a) What account should be charged for the $325,000, and how should it be shown in the financial statements? (b) The project is completed in 2010, and a successful patent is obtained. The R&D costs to complete the project are $130,000. The administrative and legal expenses incurred in obtaining patent number 472-1001-84 in 2010 total $24,000. The patent has an expected useful life of 5 years. Record these costs in journal entry form. Also, record patent amortization (full year) in 2010. (c) In 2011, the company successfully defends the patent in extended litigation at a cost of $47,200, thereby extending the patent life to December 31, 2018. What is the proper way to account for this cost? Also, record patent amortization (full year) in 2011.
  • (d) Additional engineering and consulting costs incurred in 2011 required to advance the design of a product to the manufacturing stage total $60,000. These costs enhance the design of the product considerably. Discuss the proper accounting treatment for this cost. P12-1 (Correct Intangible Asset Account) Reichenbach Co. organized in 2009, has set up a single account for all intangible assets. The following summary discloses the debit entries that have been recorded during 2009 and 2010. Intangible Assets 7/1/09 8-year franchise; expiration date 6/30/17 $ 48,000 10/1/09 Advance payment on laboratory space (2-year lease) 24,000 12/31/09 Net loss for 2009 including state incorporation fee, $1,000, and related legal fees of organizing, $5,000 (all fees incurred in 2009) 16,000 1/2/10 Patent purchased (10-year life) 84,000 3/1/10 Cost of developing a secret formula (indefinite life) 75,000 4/1/10 Goodwill purchased (indefinite life) 278,400 Get now! ACC 422 All Week 4 Assignments – Individual Wiley Plus Assignment ACC 422 Week 4 WileyPlus Assignment - Exercises
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ACC 422 All Week 4 Assignments � Individual Wiley Plus Assignment
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  • Get now! ACC 422 All Week 4 Assignments – Individual Wiley Plus Assignment Link to ACC 422 All Week 4 Assignments – Individual Wiley Plus Assignment Service Manual ACC 422 All Week 4 Assignments – Individual Wiley Plus Assignment download
  • ACC 422 Week 4 WileyPlus Assignment - Exercises ACC422 Week 4 E11-4 P11-6 E12-16 P12-1 Intermediate Acc. 13e E11-4 (Depreciation Computations—Five Methods) Wenner Furnace Corp. purchased machinery for $279,000 on May 1, 2010. It is estimated that it will have a useful life of 10 years, salvage value of $15,000, production of 240,000 units, and working hours of 25,000. During 2011 Wenner Corp. uses the machinery for 2,650 hours, and the machinery produces 25,500 units. Instructions From the information given, compute the depreciation charge for 2011 under each of the following methods. (Round to the nearest dollar.) (a) Straight-line. (b) Units-of-output. (c) Working hours. (d) Sum-of-the-years’-digits. (e) Double-declining-balance. P11-6 (Depletion, Timber, and Extraordinary Loss) Conan O’Brien Logging and Lumber Company owns 3,000 acres of timberland on the north side of Mount Leno, which was purchased in 1998 at a cost of $550 per acre. In 2010, O’Brien began selectively logging this timber tract. In May of 2010, Mount Leno erupted, burying the timberland of O’Brien under a foot of ash. All of the timber on the O’Brien tract was downed. In addition, the logging roads, built at a cost of $150,000, were destroyed, as well as the logging equipment, with a net book value of $300,000. At the time of the eruption, O’Brien had logged 20% of the estimated 500,000 board feet of timber. Prior to the eruption, O’Brien estimated the land to have a value of $200 per acre after the timber was harvested. O’Brien includes the logging roads in the depletion base. O’Brien estimates it will take 3 years to salvage the downed timber at a cost of $700,000. The timber can be sold for pulp wood at an estimated price of $3 per board foot. The value of the land is unknown, but must be considered nominal due to future uncertainties. Instructions (a) Determine the depletion cost per board foot for the timber harvested prior to the eruption of Mount (b) Prepare the journal entry to record the depletion prior to the eruption. (c) If this tract represents approximately half of the timber holdings of O’Brien, determine the amount of the extraordinary loss due to the eruption of Mount Leno for the year ended December 31, 2010. E12-16 (Accounting for R&D Costs) Margaret Avery Company from time to time embarks on a research program when a special project seems to offer possibilities. In 2009 the company expends $325,000 on a research project, but by the end of 2009 it is impossible to determine whether any benefit will be derived from it. Instructions (a) What account should be charged for the $325,000, and how should it be shown in the financial statements? (b) The project is completed in 2010, and a successful patent is obtained. The R&D costs to complete the project are $130,000. The administrative and legal expenses incurred in obtaining patent number 472-1001-84 in 2010 total $24,000. The patent has an expected useful life of 5 years. Record these costs in journal entry form. Also, record patent amortization (full year) in 2010. (c) In 2011, the company successfully defends the patent in extended litigation at a cost of $47,200, thereby extending the patent life to December 31, 2018. What is the proper way to account for this cost? Also, record patent amortization (full year) in 2011.
  • (d) Additional engineering and consulting costs incurred in 2011 required to advance the design of a product to the manufacturing stage total $60,000. These costs enhance the design of the product considerably. Discuss the proper accounting treatment for this cost. P12-1 (Correct Intangible Asset Account) Reichenbach Co. organized in 2009, has set up a single account for all intangible assets. The following summary discloses the debit entries that have been recorded during 2009 and 2010. Intangible Assets 7/1/09 8-year franchise; expiration date 6/30/17 $ 48,000 10/1/09 Advance payment on laboratory space (2-year lease) 24,000 12/31/09 Net loss for 2009 including state incorporation fee, $1,000, and related legal fees of organizing, $5,000 (all fees incurred in 2009) 16,000 1/2/10 Patent purchased (10-year life) 84,000 3/1/10 Cost of developing a secret formula (indefinite life) 75,000 4/1/10 Goodwill purchased (indefinite life) 278,400 Get now! ACC 422 All Week 4 Assignments – Individual Wiley Plus Assignment ACC 422 Week 4 WileyPlus Assignment - Exercises
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