Exam 16: Recording and Evaluating Capital Resource Process Activities: Investing

Use the following to answer questions Oceanside Enterprises is trading in its old fishing vessel for a new model. The old fishing vessel is on the books at a cost of $364,000 with accumulated depreciation of $314,600. The new fishing vessel has a list price of $538,000 but the manufacturer has agreed to reduce this by $75,000 in return for Oceanside's old fishing vessel. -The new fishing vessel should be recorded on the books at a cost of:

"Intangible assets are consistently unreported and underreported".Explain this statement.

Operational investments in non-renewable assets are referred to as:

At December 31,2010,Edgar Enterprises had equipment with a book value of $40,000.On December 31,2009,the book value was $55,000.The original cost of the equipment was $75,000.Assuming straight-line depreciation and no salvage value,what is the estimated economic life of the asset?

Comptel Corporation purchased land,a building and equipment for a total cost of $525,000.The appraised values of the land,building and equipment were $150,000,$375,000 and $75,000,respectively.The purchase price allocated to the building should be:

Irmelas Enterprises owns some equipment with an original cost of $84,700 and accumulated depreciation of $41,650.If the equipment is sold for $9,500 in cash plus a 9-month $30,000 note receivable with a stated 12% interest rate,the gain or loss recognized on the sale would be:

Tucker Truck Company acquired a delivery truck on January 4,2010.The total cost of the truck was $71,000.Tucker estimated that the truck would be used for 4 years before being sold for an estimated $7,500.Tucker uses the double-declining balance method of depreciation.The balance in the accumulated depreciation account on January 2,2013 will be:

Dynatech Corporation acquired a piece of machinery on January 3,2010.The total cost of the machinery was $172,500.Dynatech estimated that the machinery would be used for 60,000 hours before being sold for an estimated $7,500.Dynatech uses the units-of-production method of depreciation.Assuming the machine was used for 18,750 hours during the year ended December 31,2010,the depreciation expense rate per hour for 2010 was:

Overhead Industries acquired a piece of machinery on January 3,2010.The total cost of the machinery was $255,000.Overhead estimated that the machinery would be used for 68,000 hours before being sold for an estimated $10,200.Overhead uses the units-of-production method of depreciation.Assuming the machine was used for 12,700 hours during 2010,14,100 hours during 2011,and 13,400 hours during 2012,the carrying value of the machinery on January 2,2013 would be: