WEEK 3 EXERCISES ASSIGNMENT

Muggsy Bogues Company purchased equipment for $212,000 on October 1, 2014. It is estimated that the equipment will have a useful life of 8 years and a salvage value of $12,000. Estimated production is 40,000 units and estimated working hours are 20,000. During 2014, Bogues uses the equipment for 525 hours and the equipment produces 1,000 units.

Compute depreciation expense under each of the following methods. Bogues is on a calendar-year basis ending December 31.

(a)		Straight-line method for 2014 (Round answer to 0 decimal places, e.g. 45,892.)		$	the cost of	$
2.		Timberland.
3.		Cost of engineering activity required to advance the design of a product to the manufacturing stage.
4.		Lease prepayment (6 months’ rent paid in advance).
5.		Cost of equipment obtained.
6.		Cost of searching for applications of new research findings.
7.		Costs incurred in the formation of a corporation.
8.		Operating losses incurred in the start-up of a business.
9.		Training costs incurred in start-up of new operation.
10.		Purchase cost of a franchise.
11.		Goodwill generated internally.
12.		Cost of testing in search for product alternatives.
13.		Goodwill acquired in the purchase of a business.
14.		Cost of developing a patent.
15.		Cost of purchasing a patent from an inventor.
16.		Legal costs incurred in securing a patent.
17.		Unrecovered costs of a successful legal suit to protect the patent.
18.		Cost of conceptual formulation of possible product alternatives.
19.		Cost of purchasing a copyright.
20.		Research and development costs.
21.		Long-term receivables.
22.		Cost of developing a trademark.
23.		Cost of purchasing a trademark.