Green Home Automation (GHA) Inc. is a publicly traded company that designs and manufactures environmentally-friendly windows. The high-tech windows have the ability to both cool homes in the summer and warm them in the winter. The company owns the following assets:


1. Manufacturing equipment that was purchased for $495,000 on August 1,2019. The equipment was estimated to have a useful life of 10 years with no residual value.

2. A patent for the heating / cooling technology that was purchased for $315,000 on August 1, 2019. The patent is estimated to have a remaining legal life of 12 years with no residual value. GHA has a fiscal year end of July 31 and uses straight-line depreciation. On August 1,2022, GHA determines that the equipment actually only has a 7-year useful life from the acquisition date, but with a residual value of $25,000. In addition, the economic benefits of the patent were determined to only last 6 years from the acquisition date.

Instructions
a) Calculate the depreciation expense for each asset for 2023.
b) Calculate the balance in the accumulated depreciation account for each asset on July 31,2023.
c) Calculate the net amount to be reported in the 2023 of financial position for each of these assets at July 31,2023  

Answer rating: 100% (QA)

Okay here are the calculations a Depreciation expense for 2023 Manufacturing equipment Original cost ... View the full answer