Question 1 [20 points]

Zcom Inc. was preparing the annual financial statements and, as part of the year-end procedures, assessed the assets and prepared the following alphabetized schedule based on adjusted values at December 31, 2015:

Question 1 (20 points] Zcom Inc. was preparing the annual financial statements and, as part of the year-end procedures, assessed the assets and prepared the following alphabetized schedule based on adjusted values at December 31, 2015: Date of Deprec. Residual Accum. Recoverable Purchase Method* Cost Value Useful Life Deprec. Amount Equipment Jul. 5/10 Units $41,000 $6,000 7,000 units $12,500 $19,500 Furniture Nov. 27/10 DDB 10,000 1,000 10 yrs 6,778 5,000 Land May 5/10 N/A 88,000 N/A N/A N/A 105,000 Office building Jan. 1/10 SL 65,000 17,000 16 yrs 18,000 49,000 Warehouse Nov. 2/10 SL 96,400 10,000 24 yrs 18,600 79,000 Asset *DDB = Double-declining balance; SL = Straight-line; Units = Units-of-production; N/A = Not applicable a) Record any impairment losses at December 31, 2015. Assume Zcom Inc. has recorded no impairment losses in previous years. General Journal Page Gj1 Effect On Date Account/Explanation F Debit Credit Balance Sheet + b) Record depreciation for each asset at December 31, 2016. Assume that there was no change in the residual values or useful lives regardless of any impairment losses that might have occurred. The equipment produced 1,900 units during 2016. Please make sure your final answer(s) are accurate to the nearest whole number General Journal Page Gj1 Effect On Date Account/Explanation F Debit Credit Balance Sheet