SBD Decided to Use Group Amortization for Its New Fleet

question 116

Essay

SBD decided to use group amortization for its new fleet of 10 panel delivery trucks. The trucks were purchased on January 1, 2013 at a cost of $12,000 each. The estimated useful life was 5 years and the estimated residual value was 10 percent of cost. Assume straight-line group amortization is used. SBD has a December 31 year-end and only accounts for amortization at year-end.
(a) At the end of 2013, amortization expense should be recorded in the amount of $____________________.
During 2014, three transactions occurred affecting the trucks:
(1) One truck was wrecked and the only recovery was $1,000 received from the salvage yard.
(2) Ordinary repair expenditures amounted to $700.
(3) A new truck was purchased at a cost of $12,200 on December 26.
(b) At the end of 2014, amortization expense should be recorded in the amount of $_____________________.

Grasp the physical indicators that can serve as good overall health markers.

Understand the differences between a statement of partner's equity and a statement of owner's equity.

Grasp the mechanics of transactions involving changes in partnership equity.

Compute how changes in net income affect individual partner's capital accounts based on various agreements.

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Definitions:

Collectivist Cultures

Cultures that prioritize the group over the individual, emphasizing community, cooperation, and interdependence.

Externalized Coping Practices

Refers to strategies used to manage stress or emotional distress that involve actions or activities external to one’s internal thought processes.

Individualist Cultures

Societies that stress the importance of personal achievement and independence over collective goals or group cohesion.

Remoralization

The process of regaining a sense of moral commitment or ethical direction, often in a therapeutic or personal development context.