Beechy 5e Vol 1 SM Ch10
Chapter 10: Amortization and Impairment
Suggested Time
Case 10-1 Road Safety Incorporated 10-2 Omega Properties 10-3 Good Quality Auto Parts
Assignment 10-1 Depreciation policy 10 10-2 Valuation models 15 10-3 Depreciation or amortization policy 15 10-4 Component depreciation 20 10-5 Component depreciation 20 10-6 Depreciation: computation 20 10-7 Depreciation schedule 25 10-8 Interpreting depreciation disclosures … 20 10-9 Analysis of four depreciation methods—maximize income (*W) 20 10-10 Identify, recalculate depreciation 20 10-11 Depreciation and depletion—schedule, entries (*W) 25 10-12 Depreciation and sale 30 10-13 Component depreciation 20 10-14 Depreciation 20 10-15 Fractional year depreciation 25 10-16` Comprehensive intangibles—accounting and amortization (*W) 20 10-17 Component depreciation 15 10-18 Component depreciation 25 10-19 Accounting for long-lived assets 45 10-20 Asset impairment – five situations 20 10-21 Asset impairment 15 10-22 Impairment of property, pland and equipment 20 10-23 Asset impairment (*W) 20 10-24 Cash generating unit impairment 15 10-25 Asset group impairment 15 10-26 Goodwill impairment 20 10-27 Cash flow statement 15 10-28 Comprehensive long-lived asset transactions and depreciation 40 10-29 CCA calculations (Appendix 1) 25 10-30 Revaluation model…. 25 *W The solution to this assignment is on the text Web site and in the Study Guide. This solution is marked WEB.
Questions
1. Depreciation is the periodic allocation of the cost of any item of property, plant and equipment over the economic useful life of the asset. Amortization is the term used for intangible assets and depletion if it is associated with natural resources.
2. With the cost model the only market value that is relevant to depreciation or amortization calculations is market value at the end of the asset’s life; often a negligible residual. Current market
Suggested Time
Case 10-1 Road Safety Incorporated 10-2 Omega Properties 10-3 Good Quality Auto Parts
Assignment 10-1 Depreciation policy 10 10-2 Valuation models 15 10-3 Depreciation or amortization policy 15 10-4 Component depreciation 20 10-5 Component depreciation 20 10-6 Depreciation: computation 20 10-7 Depreciation schedule 25 10-8 Interpreting depreciation disclosures … 20 10-9 Analysis of four depreciation methods—maximize income (*W) 20 10-10 Identify, recalculate depreciation 20 10-11 Depreciation and depletion—schedule, entries (*W) 25 10-12 Depreciation and sale 30 10-13 Component depreciation 20 10-14 Depreciation 20 10-15 Fractional year depreciation 25 10-16` Comprehensive intangibles—accounting and amortization (*W) 20 10-17 Component depreciation 15 10-18 Component depreciation 25 10-19 Accounting for long-lived assets 45 10-20 Asset impairment – five situations 20 10-21 Asset impairment 15 10-22 Impairment of property, pland and equipment 20 10-23 Asset impairment (*W) 20 10-24 Cash generating unit impairment 15 10-25 Asset group impairment 15 10-26 Goodwill impairment 20 10-27 Cash flow statement 15 10-28 Comprehensive long-lived asset transactions and depreciation 40 10-29 CCA calculations (Appendix 1) 25 10-30 Revaluation model…. 25 *W The solution to this assignment is on the text Web site and in the Study Guide. This solution is marked WEB.
Questions
1. Depreciation is the periodic allocation of the cost of any item of property, plant and equipment over the economic useful life of the asset. Amortization is the term used for intangible assets and depletion if it is associated with natural resources.
2. With the cost model the only market value that is relevant to depreciation or amortization calculations is market value at the end of the asset’s life; often a negligible residual. Current market