A customer list from MTC Transport was purchased by SL on September 1 for $75,000 cash. It is expected that the list will generate revenues for the next six years. • SL has internally developed a strong customer list of its own. The owner, Sven, has stated that this list is worth about $220,000 if sold. • A warehouse terminal and land in the Kawartha area was purchased on November 1 for $750,000 cash. The land is valued at $600,000 and the terminal at $150,000. SL depreciates terminals at 6% per year using the declining balance method. • SL has an administrative building just west of Ottawa that is recorded on its books at $800,000. The building was purchased five years ago and has been depreciated over 20 years. On December 31, it was determined that there was a major soil issue around the building, which will make it difficult to sell. It is estimated that the building’s fair value and value in use is now 30% of its original cost, with an estimated $40,000 in costs to sell.
• SL records its depreciation to the nearest month. In other words, an asset purchased October 1 would have its depreciation prorated (3/12ths). • No entries have been made to reflect any of the transactions above. • Prime is currently at 2%.
Required Prepare journal entries, with supporting documentation, for the issues above. State any assumptions that you make.
Pick one of the topics to write a 6 page paper on. Please use citations and quotes mentioned in the topic you chose (An Outline of the history of Economic Thought by Screpanti or The Clash of Economic Ideas by White). 1. Screpanti/Zamagni in chapter 12 provide a host...