2. HEMI paid $10,000,000 for equipment to crate its inventory for shipping. This amount has...
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Accounting
2. HEMI paid $10,000,000 for equipment to crate its inventory for shipping. This amount has been recorded in the Equipment general ledger account. This equipment is expected to be useful for 500,000 crates at which point it will be taken to a recycling depot. In 2019, the equipment was used to create50,000 crates. Accountant wants you to recommend, with justification, the appropriate depreciation method for the equipment. Compute the depreciation expense for the year-ended December 31, 2019 showing your calculations. Provide a depreciation expense adjusting journal entry.
3. Accountant meticulously calculated that $3,000,000 of advertising and promotion costs were spent to build customer loyalty. This amount has been recorded in the Goodwill general ledger account. Accountant wants you to recommend, with justification, the appropriate accounting treatment for costs incurred to build customer loyalty. Provide an adjusting journal entry, if any, to properly account for costs incurred to build customer loyalty.
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