Delso Company purchased the following on January 1, 20x1: Office equipment at a cost of $50,000...

 

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Delso Company purchased the following on January 1, 20x1: Office equipment at a cost of $50,000 with an estimated useful life to the company of three years and a residual value of $15,000. The company uses the double-declining-balance method of depreciation for the equipment. Factory equipment at an invoice price of $815,600 plus shipping costs of $28,000. The equipment has an estimated useful life of 114,000 hours and no residual value. The company uses the units-of-production method of depreciation for the equipment. A patent at a cost of $300,000 with an estimated useful life of 15 years. The company uses the straight-line method of amortization for intangible assets with no residual value. The company's year ends on December 31. Required: 1-a. Prepare a partial depreciation schedule of office equipment for 20x1, 20x2, and 20x3. 1-b. Prepare a partial depreciation schedule of factory equipment. The company used the equipment for 8,800 hours in 20x1, 10,000 hours in 20x2, and 9,700 hours in 20x3. 2. On January 1, 20x4, Sanders altered its corporate strategy dramatically. The company sold the factory equipment for $711,440 in cash. Record the entry related to the sale of the factory equipment. 3. On January 1, 20x4, when the company changed its corporate strategy, the demand for one of its products produced by using the patent was significantly reduced. Its patent had estimated future cash flows of $217,000 and a fair value of $199,000. What would the company report on the income statement (account and amount) regarding the patent on January 1, 20x4? Complete this question by entering your answers in the tabs below. Required 1a Required 1b Required 2 Required 3 Prepare a partial depreciation schedule of office equipment for 20x1, 20x2, and 20x3. Note: Do not round intermediate calculations. Year Depreciation Expense Accumulated Depreciation 20x1 20x2 20x3 Net Book Value Delso Company purchased the following on January 1, 20x1: Office equipment at a cost of $50,000 with an estimated useful life to the company of three years and a residual value of $15,000. The company uses the double-declining-balance method of depreciation for the equipment. Factory equipment at an invoice price of $815,600 plus shipping costs of $28,000. The equipment has an estimated useful life of 114,000 hours and no residual value. The company uses the units-of-production method of depreciation for the equipment. A patent at a cost of $300,000 with an estimated useful life of 15 years. The company uses the straight-line method of amortization for intangible assets with no residual value. The company's year ends on December 31. Required: 1-a. Prepare a partial depreciation schedule of office equipment for 20x1, 20x2, and 20x3. 1-b. Prepare a partial depreciation schedule of factory equipment. The company used the equipment for 8,800 hours in 20x1, 10,000 hours in 20x2, and 9,700 hours in 20x3. 2. On January 1, 20x4, Sanders altered its corporate strategy dramatically. The company sold the factory equipment for $711,440 in cash. Record the entry related to the sale of the factory equipment. 3. On January 1, 20x4, when the company changed its corporate strategy, the demand for one of its products produced by using the patent was significantly reduced. Its patent had estimated future cash flows of $217,000 and a fair value of $199,000. What would the company report on the income statement (account and amount) regarding the patent on January 1, 20x4? Complete this question by entering your answers in the tabs below. Required 1a Required 1b Required 2 Required 3 Prepare a partial depreciation schedule of office equipment for 20x1, 20x2, and 20x3. Note: Do not round intermediate calculations. Year Depreciation Expense Accumulated Depreciation 20x1 20x2 20x3 Net Book Value