Answer:
Tweedie Company
The total Depreciation Expense that Tweedie recorded in Year 2 is $20,000.
The total Amortization Expense that Tweedie recorded in Year 2 is $4,500.
Explanation:
a) Data and Calculations:
Dec. 31, Year 2 Dec. 31, Year 1 Depreciation
Expense
Equipment, net $167,500 $187,500 $20,000
Patent, net 88,000 92,500 4,500
Equipment depreciation $120,000 $ 100,000 $20,000
Patent amortization $31,500 $27,000 4,500
b) Note that the depreciation and amortization expenses can be computed from the net balances or from the depreciation and amortization expenses for the two years respectively.
