Answer:
See the explanation below.
Explanation:
Given the following:
Asset Acquisition-Cost Expected-Life Residual-Value Time-Used
Land $104,300 Infinite $100,000 10 years
Building 430,000 25 years 30,000 10 years
Machine 285,000 5 years 10,000 2 years
Patent 80,000 10 years 0 3 years
Truck 21,000 100,000 miles 3,000 44,000 miles
Therefore, we have:
Building annual depreciation = ($430,000 - $30,000) / 25 = $16,000
Building net book value (NBV) = $430,000 - (16,000 * 10) = $270,000
Machine annual depreciation = ($285,000 - 10,000) / 10 = $27,500
Machine NBV = $285,000 - ($27,500 * 2) = $230,000
Patent annual amortization = $80,000 / 10 = $8,000
Patent net written down value = $80,000 - ($8,000 * 3) = $56,000
Truck accumulated depreciation = ($21,000 - 3,000) * (44,000 / 100,000) = $7,920
Truck NBV = $21,000 - $7,920 = 13,080
Westfield Semiconductors Balance Sheet (Partial) as of December 31, 2019.
<u>Details $</u>
Property, plant, and equipment:
Land (Cost) 104,300
Building (NBV) 270,000
Machine (NBV) 230,000
Truck (NBV) <u> 13,080</u>
Total PPM 617,380
Intangible assets:
Patent (NRV) <u> 56,000</u>
Total tangible and intangible assets <u> 673,380</u>
