Question

requirement 2 Plz

Problems for Section 8B 8B-1. RASPBERRY Corporation's chart of accounts includes the following categories: Land, Equipment, Patents, Copyrights, and Coal Reserves. RASPBERRY completed the following transactions during the year: Jan 2 Feb 3 Purchased Equipment for $140,000 cash; RASPBERRY also had to pay 10% tax and a $6,000 license fee. Purchased a coal field with 40,000 tons of coal reserves for $2,000,000 cash. Purchased a copyright from another company for $120,000 cash. Purchased a patent and a piece of land for a lump sum payment of $60,000. The land was appraised at $80,000 while the patent appraised at $20,000. March 4 May 5 Chapter 8 Section B

Answer 1

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Equipment purchase of Jan 2		Accumulated Depreciation			Depreciation Expense
			$                          96,000		$                96,000
Cost of Equipment:
Purchase Cost	$       140,000
Tax	$          14,000
Licence Fee	$            6,000
Total Cost	$       160,000
Rate of Dep 1/5*3	60%
Depreciation for the year $160,000*60%	$          96,000
Depletion of Coal Reserve
			$                        150,000		$             150,000
Per ton Depreciation $2,000,000/40,000 Tons	$                  50
Depletion for the year 3,000*$50	$       150,000
Copyright amortization
			$                          25,000		$                25,000
Amortization ($120,000/48 Months*10 Months)	$          25,000
Patent Amortization
			$                             1,600		$                  1,600
$12,000/60 Months*8 Months	$            1,600
	Appraized	Ratio	Transaction Price	Allocation
Land	$          80,000	80%	$                          60,000	$       48,000
Patent	$          20,000	20%	$                          60,000	$       12,000
Total	$       100,000			$       60,000
Equipment Received
			$                             7,500		$                  7,500
$180,000/72 Months*3 Months	$            7,500