Selected ledger account balances for Business Solutions follow.
For three Months Ended December 31, 2021 For Three Months Ended March 31, 2022
Office equipment $ 8,300 $ 8,300
Accumulated depreciation—Office equipment 415 830
Computer equipment 12,000 12,000
Accumulated depreciation—Computer equipment 750 1,500
Total revenue 31,784 45,300
Total assets 82,660 122,168
Required:
1. Assume that Business Solutions does not acquire additional office equipment or computer equipment in 2022. Compute amounts for the year ended December 31, 2022, for Depreciation expense—Office equipment and for Depreciation expense—Computer equipment (assume use of the straight-line method).
2. Given the assumptions in part 1, what is the book value of both the office equipment and the computer equipment as of December 31, 2022?
3. Compute the three-month total asset turnover for Business Solutions as of March 31, 2022.
