Reference no: EM133496587

Case: Depreciation, Amortization, and Depletion (Task of assessment) Instructions After you have read and understood the learning resources in this module, work through the following exercises using Chapter 10, "Long-Term Assets: Fixed and Intangible," from the textbook.

Part 1. Calculate the depreciation in the following cases.

1. La Rosa del Monte has a moving truck that does large moves in the Miami area and its cost is $88,250 with accumulated depreciation of $12,230. He also has a small truck that he uses in the Orlando area that costs $43,760 with accumulated depreciation of $7,120. to. Determine what the depreciation is for each truck using the depreciation by units of activity method. Residual value Usefull lifetime Accumulated depreciation at miles used in Truck Cost My dear beginning of the year Truck 230,000 $88,250 $17,000 $12,230 32,000 big miles Truck 280,000 43,760 6,500 7,120 27,300 little miles

2. A player's computer costs $3,850 with a residual of 800 and an estimated useful life of 5 years. to. Calculate annual depreciation using the straight-line depreciation method. depreciation).

b. Make journal entries.

3. A refrigerator in a cafeteria with a useful life of 8 years had a cost of $5,250 v to. Calculate depreciation using the straight-line depreciation method and the declining balance method.

b. Make daily wage entries for each depreciation method.

4. A sewing machine at a textile factory was purchased for $223,000, it has a residual estimate of $22,000 and a useful life of 38,000 hours. It was used in the year for 4,200 hours. to. Calculate the depreciation in the year with the method of depreciation by units produced, the depreciable cost, and the depreciation rate.

Part 2. Calculate amortization and depletion for each transaction.

1. A gold garment production company acquired the rights to a mine for $520,000,000. In the mine, it is estimated that there are 150,000,000 tons of gold. The amount of 50,000 tons were sold in the year. to. Calculate the depletion rate and the depletion expense for the year. b. You must deliver the steps of how you got to the result.

2. A fast food business purchased the copyright to a recipe book for $80,000 with a useful life of 15 years. to. Calculate the amortization. You must present the calculation made.

3. A company pays for a patent for $98,000 with a useful life of 12 years. to. Calculate the amortization.