a. Berry Co. purchases a patent on January 1, 2021, for $35,000 and the patent has an
Question:
a. Berry Co. purchases a patent on January 1, 2021, for $35,000 and the patent has an expected useful life of five years with no residual value. Assuming Berry Co. uses the straight-line method, what is the amortization expensefor the year ended December 31, 2022?
b. Kansas Enterprises purchased equipment for $75,500 on January 1, 2021. The equipment is expected to have a ten-year service life, with a residual value of $6,750 at the end of ten years. Using the double-declining balance method, depreciation expense for 2022 would be: (Do not round your intermediate calculations)
c.Kansas Enterprises purchased equipment for $76,500 on January 1, 2021. The equipment is expected to have a ten-year life, with a residual value of $6,600 at the end of ten years. Using the double-declining balance method, the book value at December 31, 2022, would be: (Do not round your intermediate calculations)
d. The Pita Pit borrowed $206,000 on November 1, 2021, and signed a six-month note bearing interest at 12%. Principal and interest are payable in full at maturity on May 1, 2022. In connection with this note, The Pita Pit should report interest expense at December 31, 2021, in the amount of: (Do not round your intermediate calculations.)
e. On September 1, 2021, Daylight Donuts signed a $210,000, 6%, six-month note payable with the amount borrowed plus accrued interest due six months later on March 1, 2022. Daylight Donuts should report interest payable at December 31, 2021, in the amount of: (Do not round your intermediate calculations.)