Chapter 16 HW Problems1. Radcliff Company sold equipment for $10,000 cash. The equipment cost Radcliff $110,000 and had accumulated depreciation of $70,000 at the time of the sale. How would the accounting equation change as a result of this transaction? Assets decrease & Stockholders’ Equity decrease2. What is the journal entry to record the sale of equipment above for Radcliff Company? Cash $? Loss $? Accumulated Depreciation $? Equipment $?3. Which of the following are based on estimates?: - useful life - salvage value - units of production - depreciable cost - acquisition cost- depreciation expense- accumulated depreciation4. Rasmussen Inc., sold equipment (costing $100,000) for $25,000 cash. Accumulated depreciation at the time of sale amounted to $65,000. What is the result of this transaction (i.e., how much of a gain or loss, if any)? Loss of $10,0005. Harris Company acquires equipment with a 10-year useful life for $700,000. The estimated salvage value of the new equipment is $100,000. The equipment is expected to produce 64,000 units over its useful life. Using the double-declining balance method, depreciation expense for Year 4 is: $71,6806. If the equipment produces 9,600 units during 2008 (first year) and the units-of-production method is used, the book value (carrying value) at the End of Year 1 is: $610,0007.. If the straight-line method is used, the accumulated depreciation after 5 years will be: $300,0008. Maziar rebuilt his welding machine with an original cost of $12,000 (no salvage expected) on the first day of the fifth year of a six year estimated life. Maziar uses the straight-line depreciation method forsimplicity purposes. The rebuilding cost $1,400 and will extend the life of the welding machine to a seventh year with no salvage. What is the depreciation in year 5? (Hint: The rebuilding cost can be capitalized) $1,8009. Jackson Company wants to sell a building that is no longer needed and consolidate some of their facilities. They paid $340,000 for the building in 2002 and the current carrying value is $300,000. They have an offer from a buyer who wants to purchase the building for $270,000 cash. How much of a gain orloss Jackson should record? loss of $30,00010. What journal entry should Jackson record for the transaction above?11. What journal entry should Jackson record if they sell the building for $325,000 cash?12. Wallace Corporation issued 3,000 shares of $10 par value common stock in exchange for a giant water slide valued at $92,500. Since all company stock is privately held, there is no market value for the stock. What is the journal entry to record this exchange? Water Slide ?Common Stock ?Paid-in-Capital in Excess of Par--Common Stock $62,50013. GreenGrass Company purchased a master mulching machine for $240,000 with a 5 year life and a $15,000 salvage value. GreenGrass uses straight-line depreciation. What is the carrying value of the machine at the end of two years.? $150,00014. Mathis Mining Company is modernizing their equipment. They are selling a machine with an original cost of $107,600 and accumulated depreciation of $52,700. If the equipment is sold for $51,000, Mathis Mining would record: $3,900 loss15. Comptel Corporation purchased land, a building and equipment for a total cost of $525,000. The appraised values of the land, building and equipment were $150,000, $375,000 and $75,000, respectively.The purchase price allocated to the land should be: