Amortization schedules @ Larson Co., whose accounting period ends on December 31, purchased (30 min) a machine for $6,800 on January 1 with an estimated residual value of $800 and estimated useful life of 10 years. Prepare amortization schedules for the current as well as the following year using 3- straight-line, 5- double- declining-balance at twice the straight-line rate, and 6- sum-of-the-years' digits (optional) methods. Book value, loss, and ioumaliling @ A machine that cost $9,000 with $3,900 of accumulated amortization was the exchange traded in for a similar machine having a $5,800 cash price. All $800 trade-in (30 mm} was offered by the seller. Calculate the book value of the old machine. Calculate the loss on the exchange. Prepare the journal entry for the exchange. Calculate the cost basis of the new equipment if the income tax method (CCA) is used. Assume accumulated amortization and total CCA taken before the exchange are equal. Amortization of an intangible @ On May 1, 2014, Osgood Company bought a patent at a cost of $5,000. It is 9-9 are asseta pattern estimated that the patent will give Osgood a competitive advantage for (10 min) 10 years. Record in general journal form amortization for 2014 and 2015. (Assume December 31 is the end of the accounting period for Osgood.) Capital cost allowance Pultzer Company bought a light general-purpose truck for $18,000 on amortization for tax Purposes March 8, 2013. This Class 10 asset had an UCC of $41,000 from 2012. (10 min) Calculate the maximum CCA allowed for 2013 for this asset class. _roup A Problems (The forms you need are on pages 15 -10 to 15-15 of the Study Guide with Workzag Papers.) Cr. Cash $5,400