on december 31 2007 the vail company owned the following assets a straight line depr 3387136

On December 31, 2007, the Vail Company owned the following assets: ? a. Straight-line depreciation b. Double-declining-balance depreciation c. Sum-of-the-years’-digits depreciation The company computes depreciation and amortization expense to the nearest whole year. During 2008, the company engaged in the following transactions: Jan. 3 Extended the building at a cost of $30,000. The extension provided an addition to the service potential of the building. Mar. 7 Sold a piece of office machinery that had originally cost $4,000 and that had accumulated depreciation of $1,952 on December 31, 2007. The machine was sold for $3,000. Apr. 28 Obtained a patent on an invention by paying $7,000. The company expected that the patent would provide protection against competition for 10 years. May 16 Purchased office fixtures and office machinery for $9,200. The supplier reduced the price because of the joint purchase. If purchased separately, the office fixtures would have cost $6,000 and the office machinery $4,000. Delivery costs paid by Vail were $200. The machinery was accidentally damaged during installation and cost $230 to repair. The office fixtures have an estimated life of five years and a residual value of $250. The office machinery has an estimated life of 10 years and a residual value of $500. Aug. 10 Exchanged the president’s desk (classified as office fixtures) for a larger desk belonging to a friend of the president. The desk had cost $600 and had accumulated de

 

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