2 3 at 4 5 30 acres 6 7 8 9 10 11 12 13 Construction Material Suppliers Inc. purchases farmland 150 acres $ 12,000 per acre Additional amount needed to be invested to make the property mineable $ 5,200,000 Acreage not mineable because of property line setbacks, plant setup, stockpile area and sump & waste area The amount of limestone estimated to be mined from the remaining acreage is 100,000 T per acre The number of years the mine is expected to provide sales for the company 20 years The residual value of the land at the end of the mining is expected to be $ 280,000 The company mined limestone in 2019 of 550,000T The company sold limestone in 2019 of 525,000 T The company sells the gravel for $ 5.00 per T 14 15 Prepare the journal entries for mining and sales for 2019: 16 17 18 19 20 21 22 23 24 25 28 27 Podunk Pole Company started business in July 1, 2015 with the following purchases: 3 4 5 7 8 9 10 11 15 16 Useful life Residual value Depr. Method Land $225,000 Indefinite Building $1,250,000 40 years $450.000 Straight Line Parking Lot Lighting & Fencing $60,000 15 years $6.950 Double Declining Balance Processing Equipment $228,000 10 years $22.800 units of Production Office Equipment $52,000 5 years $7,500 Double Declining Balance 12 At the end of 2018, the company has come to the conclusion that the building will not last 40 years. 13 The estimated useful life should have been 38.5 years with a salvage value of $462,500 14 What is the annual depreciation for the building for 2019? 17 Original depreciation per year 18 Book value 12-31-18 19 Depreciation for 2019 20 21 The Processing Equipment is rated to run for a total of 60,000 hours based on three shifts in ten years 22 Prepare a depreciation schedule for land improvements, processing equipment and office equipment 23 Land improvements Beg BV Depr Accum Der 2015 2016 27 2017 2018 2019 2020 2021 24 25 20 20 29 30 31 32 33 2022 35 3 37 34 39 2023 2024 2025 2026 2027 2028 2029 2030 41 42 Beg BV Depr Actum Der 45 9393998 47 Per hour depreciation Machinery 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 50 Hours used 2.200 5,900 6.200 5.800 6.100 6,000 5.750 5,900 5.800 6.100 4.250 60,000 51 52 53 56 57 Beg BV Depr Accum Der BB 88893 59 60 Office Equipment 2015 2016 61 2017 2018 2019 2 3 4 5 6 7 4D Printing and Processing, LLC is developing a 4D printer. Here are three economic events that need to be recorded. For each event, show: a) The transaction needed to record the event b) The annual amortization expense entry (You may ignore the date and description for each entry) (If no entry is to be made, put "no entry in the first box and leave the rest blank) 1) 4D incurs expenditures in the amount of $45,680 for: research, legal fees and consulting fees that results in a patent being filed for a new 4D printer. The market for the new 4D printer will last 10 years before the technology becomes obsolete. 8 9 10 1 11 12 13 14 a) a) 15 16 17 b) 18 19 20 21 22 2) 23 4D purchases a patent in the amount of $26,400 from MoTech Enterprises. The patent has a legal life of 12 years left on it. The market for the new 4D printer will last 10 years before the technology becomes obsolete. 24 25 26 a) 27 28 29 b) 30 31 32 33 3) 34 35 4D purchases a trademark from New Era Printers for $45,000. The market for the new 4D printer will last 10 years before the technology becomes obsolete. 36 37 38 a) 39 40 b) 42 43 44