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Prince’s Pipe Co. purchases equipment with a list price of $22,000. Regarding the purchase, Prince: -Received a 2% discount off the list price -Paid shipping costs of $800 -Paid $1,750 to install the equipment, $1,200 of which was for a unique stand for the equipment -Paid $2,800 to insure equipment delivery transit, and $2,500 for a two year policy to cover operations -Paid $600 to have the manufacturer train employees on safety DETERMINE the acquisition cost of the equipment

Phigam Steel purchases a machine on January 1 for $30,000. The machine has an estimate useful life of seven years, during which time it is expected to produce 114,800 units. Salvage value is estimated at $1,300. The machine produces 15,500 and 16,200 units in its first and second years of operation, respectively. CALCULATE depreciation expense for the machine’s first two years using the straight-line, double-declining-balance, and units-of-activity methods of depreciation. Round values to the nearest dollar

On January 1, 2012, Roosters Co. purchases equipment for $30,000 and estimates a useful life of eight years and a salvage value of $2,000. On January 1, 2014 Roosters revises the equipment’s useful life from eight years to five years. Roosters uses the straight-line method of depreciation
A. CALCULATE depreciation expense for 2012, 2013, and 2014.
B. RECALCULATE 2014 depreciation expense assuming the ROOSTERS leaves the useful life at eight years but reduces salvage value to 0$

Ellis industries sells a building that has an original cost of $200,000 and an accumulated depreciation balance of $100,000. PREPARE the journal entry to record the sale assuming the sales price was (a) $100,000, (b) $95,000 and (c) $108,000.

Phoebe Inc. incurred the following expenditures: -Research and development cost of $60,000 were incurred to develop a new patentable product. -Paid $1,000 in application fees for the patent. -Paid $12,000 in legal fees to register the awarding patent. -Incurred $5,000 in legal fees to successfully defend the patent against a competitor. DETERMINE the total cost of the patent.

Papa John’s Pizza Current Year Prior Year Property and Equipment net 189,992 198,957 Total Assets 386,468 401,817 Depreciation Expense 31,800 30,600 Property & Equip. at cost 388,080 408,074 Accumulated depreciation 198,088 209,117 Total revenues 1,132,087 1,063,595 CALCULATE AND INTERPRET (1) horizontal and vertical analysis of fixed assets and depreciation expense, (2) fixed asset turnover ratio, and (3) average life and average age of fixed assets. Round the percentages to one decimal points