1. Compute the depletion, amortization, and depreciation expense on December 31, 2006 for each asset listed above.
2. Record the depreciation journal entries for the assets above
3. Suppose that Machine 1 was sold for $40,000 on 12/31/2008, record the entry.
4. Suppose that the corporation spent $20,000 in 2006 to defend the patent. Record the entry.
5. Financial reporting on Fixed Assets: 

Prepare a partial balance sheet for Mallory Corp. showing fixed and intangible assets.

Equipment	Cost	Salvage	Life	Method of Depreciation
Machine 1	$65,000	$5,000	5	DDB purchased 1/1/2006
Building #3	$900,000 not including land	$50,000	25	S/L purchased 6/30/2006
Mine 316	$1,000,000	$0	1,000,000 tons	30,000 tons extracted. Mine purchased 1/1/2006
Patent	$50,000	0	17	Purchased 1/1/2006
Truck 1	$35,000	$3,000	200,000 miles	Units of production: total miles depreciated to date are 60,000 as of January 1, 2006. Miles this year 30,000
Machine 2	$100,000	$5,000	10	S/L

Answer rating: 100% (QA)

Answer Depreciable value Cost Salvage Depletion Amortization Depreciation expense on Dece... View the full answer