ACC 422 Week 4 WileyPlus Assignment
E11-4 (Depreciation Computations—Five Methods)
Instructions
From the information given, compute the depreciation charge for 2011 under each of the following
methods. (Round to the nearest dollar.)
(a) Straight-line.
(b) Units-of-output.
(c) Working hours.
(d) Sum-of-the-years’-digits.
(e) Double-declining-balance.
From the information given, compute the depreciation charge for 2011 under each of the following
methods. (Round to the nearest dollar.)
(a) Straight-line.
(b) Units-of-output.
(c) Working hours.
(d) Sum-of-the-years’-digits.
(e) Double-declining-balance.
P11-6 (Depletion and Extraordinary Loss)
Instructions
(a) Determine the depletion cost per board foot for the timber harvested prior to the eruption of Mount
Leno.
(b) Prepare the journal entry to record the depletion prior to the eruption.
(c) If this tract represents approximately half of the timber holdings of O’Brien, determine the
amount of the extraordinary loss due to the eruption of Mount Leno for the year ended
December 31, 2010.
(a) Determine the depletion cost per board foot for the timber harvested prior to the eruption of Mount
Leno.
(b) Prepare the journal entry to record the depletion prior to the eruption.
(c) If this tract represents approximately half of the timber holdings of O’Brien, determine the
amount of the extraordinary loss due to the eruption of Mount Leno for the year ended
December 31, 2010.
E12-16 (Accounting for R&D Costs)
Instructions
(a) What account should be charged for the $325,000, and how should it be shown in the financial
statements?
(a) What account should be charged for the $325,000, and how should it be shown in the financial
statements?
(b) The project is completed in 2010, and a successful patent is obtained. The R&D costs to complete the project are $130,000. The administrative and legal expenses incurred in obtaining patent number 472-1001-84 in 2010 total $24,000. The patent has an expected useful life of 5 years. Record
these costs in journal entry form. Also, record patent amortization (full year) in 2010.
these costs in journal entry form. Also, record patent amortization (full year) in 2010.
(c) In 2011, the company successfully defends the patent in extended litigation at a cost of $47,200,
thereby extending the patent life to December 31, 2018. What is the proper way to account for this
cost? Also, record patent amortization (full year) in 2011.
thereby extending the patent life to December 31, 2018. What is the proper way to account for this
cost? Also, record patent amortization (full year) in 2011.
(d) Additional engineering and consulting costs incurred in 2011 required to advance the design of a
product to the manufacturing stage total $60,000. These costs enhance the design of the product
considerably. Discuss the proper accounting treatment for this cost.
E11-4 (Depreciation Computations—Five Methods)
product to the manufacturing stage total $60,000. These costs enhance the design of the product
considerably. Discuss the proper accounting treatment for this cost.
E11-4 (Depreciation Computations—Five Methods)
Instructions
From the information given, compute the depreciation charge for 2011 under each of the following
methods. (Round to the nearest dollar.)
(a) Straight-line.
(b) Units-of-output.
(c) Working hours.
(d) Sum-of-the-years’-digits.
(e) Double-declining-balance.
From the information given, compute the depreciation charge for 2011 under each of the following
methods. (Round to the nearest dollar.)
(a) Straight-line.
(b) Units-of-output.
(c) Working hours.
(d) Sum-of-the-years’-digits.
(e) Double-declining-balance.
P11-6 (Depletion and Extraordinary Loss)
Instructions
(a) Determine the depletion cost per board foot for the timber harvested prior to the eruption of Mount
Leno.
(b) Prepare the journal entry to record the depletion prior to the eruption.
(c) If this tract represents approximately half of the timber holdings of O’Brien, determine the
amount of the extraordinary loss due to the eruption of Mount Leno for the year ended
December 31, 2010.
(a) Determine the depletion cost per board foot for the timber harvested prior to the eruption of Mount
Leno.
(b) Prepare the journal entry to record the depletion prior to the eruption.
(c) If this tract represents approximately half of the timber holdings of O’Brien, determine the
amount of the extraordinary loss due to the eruption of Mount Leno for the year ended
December 31, 2010.
E12-16 (Accounting for R&D Costs)
Instructions
(a) What account should be charged for the $325,000, and how should it be shown in the financial
statements?
(a) What account should be charged for the $325,000, and how should it be shown in the financial
statements?
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