Requlred Information

COMP$8-1($Algo$)$ Comprehensive Problem $($Chapters $6-8)$ LO$3-6,5-3,6-2,7-2,7-4,8-3,8-4,8-5,8-6$

$[$The following information applies to the questions displayed below.$]$

Complete the requirements for each of the following independent cases:

Case E

Delso Company purchased the following on January $1,20$x$1$:

Office equipment at a cost of $$51,000$ with an estimated useful life to the company of three years and a residual value of $$15,300.$

The company uses the double$-$declining$-$balance method of depreciation for the equipment.

Factory equipment at an invoice price of $$762,400$ plus shipping costs of $$22,000.$ The equipment has an estimated useful life of

$106,000$ hours and no residual value. The company uses the units$-$of$-$production method of depreciation for the equipment.

A patent at a cost of $$290,000$ with an estimated useful life of $10$ years. The company uses the straight$-$line method of amortization

for intangible assets with no residual value.

The company's year ends on December $31.$

Requlred:

$1-$a$.$ Prepare a partial depreciation schedule of office equipment for $201,202,$ and $203.$

$1-$b$.$ Prepare a partial depreciation schedule of factory equipment. The company used the equipment for $8,100$ hours in $20$x$1,9,300$

hours in $202,$ and $9,000$ hours in $203.$

On January $1,20$x$4,$ Sanders altered its corporate strategy dramatically. The company sold the factory equipment for $$667\mathrm{.}480$ in

cash. Record the entry related to the sale of the factory equipment.

On January $1,20$x$4,$ 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 $$176,000$ and a fair value of $$152,000.$ What would the

company report on the income statement $($account and amount$)$ regarding the patent on January $1,20$x$4?$

Complete this question by entering your answers in the tabs below.

Prepare a partial depreciation schedule of office equipment for $201,202,$ and $203.$

Note: Do not round intermediate calculations.