Selected ledger account balances for Business Solutions follow.

Required

1. Assume that Business Solutions does not acquire additional office equipment or computer equipment in 2022. Compute amounts for the year ended December 31, 2022, for Depreciation Expense—Office Equipment and for Depreciation Expense—Computer Equipment (assume use of the straight-line method).

2. Given the assumptions in part 1, what is the book value of both the office equipment and the computer equipment as of December 31, 2022?

3. Compute the three-month total asset turnover for Business Solutions as of March 31, 2022. Use total revenue for the numerator and average the December 31, 2021, total assets and the March 31, 2022, total assets for the denominator. Interpret its total asset turnover if competitors average 2.5 for annual periods. (Round turnover to two decimals.)

Transcribed Image Text:

For Three Months For Three Months Ended December 31, 2021 Ended March 31, 2022 Office equipment .... Accumulated depreciation-Office equipment... Computer equipment..... Accumulated depreciation-Computer equipment....... $ 8,000 $ 8,000 400 800 20,000 20,000 1,250 2,500 Total revenue 31,284 44,000 Total assets... 83,460 120,268