Question

29. Long-lived assets (30 points) 5 Dep for 182 impact for sale of Asset On January 1, 2018, Drye Company purchased a $445,000 piece of machinery to use in its business. The machinery was shipped FOB Delivery point, $3,000, and required special installation by the vendor prior to use, $1,500. Drye Company purchased the machinery by issuing a five-year note. The machinery has an estimated useful life of 10 years and expected to have a $15,000 salvage value at the end of its useful life. Drye uses the straight-line method of depreciating long-lived assets. Due to changes in technology, Drye sold the machinery on December 31, 2021 for $265,000 cash. They plan on purchasing newer machinery using the proceeds from the sale. What is the capitalized cost of the machinery purchased on 1/1/2018? (2 points) -2 Complete the following chart (1 point ea): -16 445000-810OO Date Historical Cost Depreciation Accumulated Net Book Expense Depreciation Value 12/31/2018 15000 12/31/2019 12/31/2020 12/31/2021 356,000 284,800 $10 - 0.12 = 0.2$ 227,840 10 182,272 56960 Record the following transactions related to the asset purchase (3 points ea): -1 (1) Purchase of machinery on 1/1/2018 -3 (2) Depreciation of machinery on BOTH 12/31/2018 & 12/31/2019 -3 (3) Sale of asset on 12/31/2021 45,568 Assets Liabilities Equity Income Statement Accumulated Retained Common Revenue Expense Net Income # Cash Machinery Depreciation Notes Pay Earnings Stock (44)5000) 445000

          29. Long-lived assets (30 points) 5
Dep for 182
impact for sale of Asset
On January 1, 2018, Drye Company purchased a $445,000 piece of machinery to use in its business.
The machinery was shipped FOB Delivery point, $3,000, and required special installation by the
vendor prior to use, $1,500. Drye Company purchased the machinery by issuing a five-year note.
The machinery has an estimated useful life of 10 years and expected to have a $15,000 salvage value
at the end of its useful life. Drye uses the straight-line method of depreciating long-lived assets.
Due to changes in technology, Drye sold the machinery on December 31, 2021 for $265,000 cash.
They plan on purchasing newer machinery using the proceeds from the sale.
What is the capitalized cost of the machinery purchased on 1/1/2018? (2 points) -2
Complete the following chart (1 point ea):
-16
445000-810OO
Date Historical Cost Depreciation Accumulated Net Book
Expense Depreciation Value
12/31/2018
15000
12/31/2019
12/31/2020
12/31/2021
356,000
284,800 $10 - 0.12 = 0.2$
227,840 10
182,272 56960
Record the following transactions related to the asset purchase (3 points ea):
-1 (1) Purchase of machinery on 1/1/2018
-3 (2) Depreciation of machinery on BOTH 12/31/2018 & 12/31/2019
-3 (3) Sale of asset on 12/31/2021
45,568
Assets Liabilities Equity Income Statement
Accumulated
Retained Common
Revenue Expense Net
Income
# Cash Machinery Depreciation Notes Pay Earnings Stock
(44)5000) 445000

29. Long-lived assets (30 points) 5
Dep for 182
impact for sale of Asset
On January 1, 2018, Drye Company purchased a 445,000 piece of machinery to use in its business.
The machinery was shipped FOB Delivery point,3,000, and required special installation by the
vendor prior to use, 1,500. Drye Company purchased the machinery by issuing a five-year note.
The machinery has an estimated useful life of 10 years and expected to have a15,000 salvage value
at the end of its useful life. Drye uses the straight-line method of depreciating long-lived assets.
Due to changes in technology, Drye sold the machinery on December 31, 2021 for 265,000 cash.
They plan on purchasing newer machinery using the proceeds from the sale.
What is the capitalized cost of the machinery purchased on 1/1/2018? (2 points) -2
Complete the following chart (1 point ea):
-16
445000-810OO
Date Historical Cost Depreciation Accumulated Net Book
Expense Depreciation Value
12/31/2018
15000
12/31/2019
12/31/2020
12/31/2021
356,000
284,80010 - 0.12 = 0.2227,840 10
182,272 56960
Record the following transactions related to the asset purchase (3 points ea):
-1 (1) Purchase of machinery on 1/1/2018
-3 (2) Depreciation of machinery on BOTH 12/31/2018 12/31/2019
-3 (3) Sale of asset on 12/31/2021
45,568
Assets Liabilities Equity Income Statement
Accumulated
Retained Common
Revenue Expense Net
Income
# Cash Machinery Depreciation Notes Pay Earnings Stock
(44)5000) 445000

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