Tweedie Company reported the following in the long-term asset section of its balance sheet. They did not purchase or sell any equipment during the period. Dec. 31, Year 2 Dec. 31, Year 1 Equipment, net of depreciation of $120,000 and 100,000, respectively $167,500 $187,500 Patent, net of amortization of $31,500 and $27,000, respectively 88,000 92,500 The company uses the straight-line method to depreciate and amortize all of its operating assets. How much depreciation expense did Tweedie record in Year 2

Tweedie Company

The total Depreciation Expense that Tweedie recorded in Year 2 is $20,000.

The total Amortization Expense that Tweedie recorded in Year 2 is $4,500.

Explanation:

a) Data and Calculations:

                                       Dec. 31, Year 2      Dec. 31, Year 1   Depreciation

                                                                                                    Expense

Equipment, net                  $167,500                   $187,500     $20,000

Patent, net                             88,000                     92,500           4,500

Equipment depreciation  $120,000                 $ 100,000     $20,000

Patent amortization            $31,500                    $27,000         4,500

b) Note that the depreciation and amortization expenses can be computed from the net balances or from the depreciation and amortization expenses for the two years respectively.

answer; /// i do believe the correct answer is (possession utility);