Cutter Enterprises purchased equipment for $81,000 on January 1, 2021. The equipment is expected to...
50.1K
Verified Solution
Link Copied!
Question
Accounting
Cutter Enterprises purchased equipment for $81,000 on January 1, 2021. The equipment is expected to have a five-year life and a residual value of $3,300. Using the sum-of-the-years'- digits method, depreciation for 2022 and book value at December 31, 2022, would be: (Do not round depreclation rate per year) Multiple Choice $21,600 and $29,100 respectively. $21.600 and $32,400 respectively. $20,720 and $31,080 respectively. $20,720 and $34,380 respectively. Granite Enterprises acquired a patent from Southern Research Corporation on January 1, 2021, for $3.8 million. The patent will be used for five years, even though its legal life is 20 years. Rocky Corporation has made a commitment to purchase the patent from Granite for $250,000 at the end of five years. Compute Granite's patent amortization for 2021, assuming the straight- line method is used. Multiple Choice O $355.000 $710.000 $380.000 $760,000
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
