Reference no: EM132992168

Question -

1-1 Distinguish among depreciation, depletion, and amortization.

1-2 Intangibles have either a limited useful life or an indefinite useful life. How should these two different types of intangibles be amortized?

1-3 Describe the accounting problems associated with self-constructed?

1-4 Mazen Corporation purchased a new machine for its assembly process on August 1, 2012. The cost of this machine was $150,000. The company estimated that the machine would have a salvage value of $24,000 at the end of its service life. Its life is estimated at 5 years and its working hours are estimated at 21,000 hours. Year-end is December 31.

Instructions - Compute the depreciation expense under the following methods. Each of the following should be considered unrelated. (a) Straight-line depreciation for 2012. (b) Activity method for 2012, assuming machine usage was 800 hours. (c) Sum-of-the-years'-digits for 2013. (d) Double-declining-balance for 2013.