Financial accounting 16th Edition by Jan Williams,Susan Haka,Mark Bettner ,Joseph Carcello

تمرين 17

During the current year, Rothchild, Inc., purchased two assets that are described as follows:

Rothchild depreciates heavy equipment by the declining-balance method at 150 percent of the straight-line rate.t amortizes intangible assets by the straight-line method.t the end of two years, because of changes in Rothchild's core business, it sold the patent to a competitor for $30,000.
Instructions
a.ompute the amount of depreciation expense on the heavy equipment for each of the first three years of the asset's life.
b.ompute the amount of amortization on the patent for each of the two years it was owned by Rothchild.
c.repare the plant and intangible assets section of Rothchild's balance sheet at the end of the first and second years.lso, calculate the amount of the gain or loss on the patent that would be included in the second year's income statement.