CMC records depreciation and amortization expenses annually. They do not use an accumulated amortization account. (i.e. Amortization Expense is recorded with a debit to Amort. Exp and a credit to the Patent.) Annual depreciation rates are 7% for Buildings/Equipment/Furniture, no salvage. (Round to the nearest whole dollar.) Annual Amortization rates are 10% of the original cost, straight-line method, no salvage. CMC owns two patents: Patent #FJ101 and Patent #CQ510. Patent #CQ510 was acquired on October 1, 2016. Patent #FJ101 was acquired on April 1, 2018, for $119,000. The last time depreciation & amortization were recorded was December 31, 2017.

Before Adjustment:
Land: 348791
Equipment and Furniture: 332989
Building: 876418
Patents 217000

Answer rating: 100% (QA)

Journad Entries on 31 Decembes 2018 Depreciation Expalc A 2330923 To Equipment fur... View the full answer