Reference no: EM131781490

On December 31, 2013, the Mallory Corporation had the following activity in its fixed assets record.  Assume all assets were purchased on January 1.

Equipment	Cost	Salvage	Date	Life	Method of Depreciation
Machine 1	$65,000	$5,000	2012	5	DDB
Building #3	$900,000 not including land	$50,000	2004	25	S/L
Mine 316	$1,000,000	$0	2010	1,000,000 tons	30,000 tons extracted
Mine 682	$500,000	$100,000	2011	40,000 barrels	6,000 barrels extracted
Patent	$50,000	0	2010	17
Truck 1	$35,000	$3,000	2010	200,000 miles	Units of production: total miles depreciated to date are 60,000 as of January 1, 2006. Miles this year 30,000
Truck 2	$50,000	$5,000	2009	150,000 miles	Units of production, miles this year are 15,000
Truck 3	$75,000	$10,000	2008	200,000 miles	Units of production: total miles depreciated to date are 180,000 as of January 1, 2006. Miles in 2006 are 30,000 miles.
Machine 2	$100,000	$5,000	2003	10	S/L

REQUIRED:

Compute the depletion, amortization, and depreciation expense on December 31, 2013 for each asset listed above.

Record the entries for the assets above

Suppose that we sold machine 2 for $50,000, record the entry

Suppose that the building life increased from 25 years to 30 years, revise the depreciation and prepare the entry.

Suppose that the corporation spent $20,000 in 2013 to defend the patent. Record the entry.