During the current year ending on December 31, BSP Company completed the following transactions: a. On January 1. purchased a patent for $26,000 cash (estimated useful life, five years). b. On January 1, purchased another business for $160,000 cash, including $12,000 for goodwill. The assets included accounts receivable with a fair value of $12,000 and property and equipment with a fair value of $136,000 (with a residual value of $14,280 and estimated useful life of 10 years). The company assumed no liabilities. Goodwill has an indefinite life. c. On December 31, constructed a storage shed on land leased from D. Heald. The cost of the shed was $17,600. The company uses straight-line depreciation. The lease will expire in five years. (Amounts spent to enhance leased property are capitalized as intangible assets called Leasehold Improvements.) d. Total expenditures for ordinary repairs were $4,800 during the current year. e. On December 31 of the current year, sold Machine A for $7,200 cash. Original cost was $18,000; accumulated depreciation to December 31 of the prior year was $10,800 (on a straight-line basis with a $4,500 residual value and five-year useful life). Record the depreciation expense in transaction e(1) and the sale in transaction e(2). f. On December 31 of the current year, paid $6,600 for a complete reconditioning of Machine B acquired on January 1 of the prior year. Original cost, $49,000; accumulated depreciation to December 31 of the prior year was $2,500 (on a straight-line basis with a $9,000 residual value and 16-year useful life). P8-6 Part 1 Required: 1. Record journal entries for transactions (a) through (f). Note: If no entry is required for a transaction/event, select "No journal entry required" In the first account field. View transaction list Journal entry worksheet < 1 2 3 4 5 6 7 Record the $26,000 purchase of patent for cash on January 1. Note: Enter debits before credits. Transaction General Journal Debit Credit

1. A patent was purchased on January 2 of Year 1 for $104,000 when the remaining legal life was 16 years. On January 2 of Year 3, Denzel determined that the remaining useful life of the patent was only eight years from the date of its acquisition. 2. On January 1 of Year 3, Denzel Company purchased a second patent for $128,000 cash. At January 1 of Year 3, a total of 6 years of the patent's legal life of 20 years had expired. 3. On June 30 of Year 3, Denzel Company paid a firm $12,800 for a new trademark. Denzel considers the life of the trademark to be indefinite. 4. On November 1 of Year 3, Denzel Company acquired all noncash assets and assumed all liabilities of Lee Company at a cash purchase price of $192,000. Denzel determined that the fair value of the identifiable net assets acquired in the transaction is $187,200. Required a. What is the carrying value of each intangible asset on December 31 of Year 3? Assume no impairment losses were recognized in prior periods. b. What is…

Select financial information for Logistical Corp. as at December 31, 20X6, follows: Please find the attached image Additional information is as follows: • During the year, Logistical sold equipment for proceeds of $50,000. The equipment had a cost of $80,000 and accumulated depreciation of $35,000.• During the year, a review of Logistical’s goodwill was completed, and it was determined that the asset was impaired and should be written down by $3,000.• Logistical did not purchase any additional investments in the year. Any changes in the fair value of investments have been adjusted through other comprehensive income. These securities are not cash equivalents.• During the year, a new lease was signed for equipment that had a fair market value of $45,000. Depreciation expense for the year totalled $1,000. The new lease was signed in the year, which required a $7,000 payment at the start of the lease.• Logistical elects to classify any interest paid and dividends paid as financing…

During the current year, Yost Company disposed of three different assets. On January 1 of the current year, prior to the disposal of the assets, the accounts reflected the following: Asset Machine A Machine B Machine C Estimated Life 8 years 10 years 15 years The machines were disposed of during the current year in the following ways: a. Machine A: Sold on January 1 for $5,000 cash. b. Machine B: Sold on December 31 for $30,500; received cash, $22,500, and an $8,000 interest-bearing (12 percent) note receivable due at the end of 12 months. c. Machine C: On January 1, this machine suffered irreparable damage from an accident. On January 10, a salvage company removed the machine at no cost. Original Cost Residual Value $21,000 120,000 85,000 Accumulated Depreciation (straight line) $15,750 (7 years) 84,800 (8 years) 64,000 (12 years) $3,000 14,000 5,000 equired: Give all journal entries related to the disposal of each machine in the current year. 2. Select the accounting rationale for…