Required information [The following information applies to the questions displayed below) Solich Sandwich Shop had the following long-term asset balances as of January 1, 2024: Accumulated Depreciation Land Building Equipment Patent Cost $95,000 460,000 235,000 250,000 0 $(165,600) (50,000) (100,000) Book Value $95,000 294,400 185,000 150,000 Solich purchased all the assets at the beginning of 2022. The building is depreciated over a 10-year service life using the double declining-balance method and estimating no residual value. . The equipment is depreciated over a nine-year service life using the straight-line method with an estimated residual value of $10,000 The patent is estimated to have a five-year useful life with no residual value and is amortized using the straight-line method. Depreciation and amortization have been recorded for 2022 and 2023 (first two years). 2. For the year ended December 31, 2024, record amortization expense for the patent. (If no entry is required for a transaction/event select "No Journal Entry Required" in the first account field.)
Required information [The following information applies to the questions displayed below) Solich Sandwich Shop had the following long-term asset balances as of January 1, 2024: Accumulated Depreciation Land Building Equipment Patent Cost $95,000 460,000 235,000 250,000 0 $(165,600) (50,000) (100,000) Book Value $95,000 294,400 185,000 150,000 Solich purchased all the assets at the beginning of 2022. The building is depreciated over a 10-year service life using the double declining-balance method and estimating no residual value. . The equipment is depreciated over a nine-year service life using the straight-line method with an estimated residual value of $10,000 The patent is estimated to have a five-year useful life with no residual value and is amortized using the straight-line method. Depreciation and amortization have been recorded for 2022 and 2023 (first two years). 2. For the year ended December 31, 2024, record amortization expense for the patent. (If no entry is required for a transaction/event select "No Journal Entry Required" in the first account field.)
Financial Accounting: The Impact on Decision Makers
10th Edition
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Gary A. Porter, Curtis L. Norton
Chapter8: Operating Assets: Property, Plant, And Equipment, And Intangibles
Section: Chapter Questions
Problem 8.6E
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