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Question 19 (7% total) HoneyBunny, Inc. purchased a machine…

Question 19 (7% total) HoneyBunny, Inc. purchased a machine on 1/1/2016 for $300,000.  At the time of the purchase, they estimated that the machine would last 6 years and have a salvage value of $90,000.  They begin depreciating the machine using the straight-line depreciation method.  On 1/1/2019, they change their estimated salvage value to $50,000 and extend the useful life of the machine by 2 years.    19) What amount of depreciation expense will HoneyBunny report (at year-end) in 2019 related to this machine? 

Questions 9 – 12 (15% total) On 1/1/2012, Marcellus Inc ente…

Questions 9 – 12 (15% total) On 1/1/2012, Marcellus Inc enters into a 10-year non-cancellable lease for a piece of machinery owned by Mia, Inc.  The lease calls for annual payments of $10,000, payable at the beginning of each year of the lease (first payment due 1/1/2012).  At the end of the lease, ownership transfers to Marcellus, Inc.  Mia, Inc purchased this machine on 12/31/2011 for $50,000, and the economic life of the machine is thought to be 20 years.  Marcellus uses a 6% discount rate for present value calculations, while Mia uses 8%.  9)What type of lease is the from the perspective of Mia, Inc?    10) What (if any) journal entries should Mia, Inc. record on 1/1/2012 (ignoring depreciation)?          11) What (if any) journal entries should Mia, Inc. record on 12/31/2012, assuming Mia prepares financial statements annually on 12/31?  (ignoring depreciation)           12) How much is Mia, Inc.’s net income impacted as a result of this lease in 2012?  (ignoring depreciation)