land‚ plant and equipment and natural resources. An intangible asset has no physical substance. These will include good will‚ patent rights and copyrights. Land is not normally amortized because its useful life is assumed to be indefinitely long. Depreciation is process of converting the original cost of plant and equipment assets to expense. Depletion on the other hand is the process of converting the cost of the natural resource assets to expense. If the intangible assets are converted to expense
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Inventory valuation methods: 5. Depreciation methods: 6. Depreciation computations: 7. Depreciation computations: ACC205_Week_Three_Exercise_Assignment: Inventory 1. Specific identification method. 2. Inventory valuation methods: basic computations. 3. 3. 3. Perpetual inventory system: journal entries 4. 4. 4. Inventory valuation methods: computations and concepts 5. 5. 5. Depreciation methods. 6. 6. 6. Depreciation computations. 7. 7. 7. Depreciation computations: change in estimate.
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following paragraphs: 1. The land at the old site‚ together with the building thereon‚ was sold for $149‚860 cash. 2. Certain equipment was sold for $35‚200 cash. This equipment appeared on the books at a cost of $73‚645 less accumulated depreciation of $40‚890 for a net book value of $32‚755. 3. A new printing press was purchased. The invoice cost of this equipment was $112‚110. A 2 percent cash discount was taken by Stafford Press so that only $109‚868 was actually paid to the seller.
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(Rs in Crores) PARTICULARS F.Y(2012-13) CY(2011-12) Revenue from operations 2959.03 2554.44 Profit before finance cost depreciation & taxation 238.26 196.74 Finance cost 109.67 93.82 Depreciation & amortization expenses 56.51 47.31 Profit before tax(PBT) 72.08 55.61 Tax expense 2.83 3.63 Profit after taxation(PAT) 69.25 51.98 Interim equity dividend paid including tax 15.28 Nil Proposed dividend 5.13
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Harnischfeger altered their depreciation from a direct method to the straight-line method for financial reporting purposes. They also included the products purchased from Kobe Steel‚ LTD and sold by them in their net sales instead of stating only the gross margin per unit. An adjustment of the residual values on certain machinery and equipment was made and they also included the financial statements of some foreign subsidiaries. 2. What is the effect of the depreciation accounting method change on
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simply a substitution from the historical cost method. Component depreciation is a particular area of a depreciable asset which may have a different estimated useful life. Component depreciation is general considered as a separate depreciated value‚ and is normally used by only the IFRS‚ however the GAAP does sometimes use this type of component depreciation. This type of depreciation would normally be used to view the depreciation as an authorization or allocation of cost over useful life of the
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Inc. has sales of $585‚000‚ costs of $273‚000‚ depreciation expense of $71‚000‚ interest expense of $38‚000‚ and a tax rate of 35 percent. Building an income statement for this company‚ what is the net income? Lifeline‚ IncIncome Statement | Net sales $585‚000 Cost $273‚000------------------------------------------------- Depreciation
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ADM 2342X MID TERM EXAM Intermediate Financial Accounting 1 Spring/Summer 2014 SOLUTIONS Instructions: 1. This examination comprises 6 questions over 19 pages. The last two pages (pages 18 and 19) contain present value tables. Page 17 is a page for rough work. Answer all questions directly in this booklet. The booklet is not to be removed from the examination room. You may separate the pages but ensure that you put them back together in the correct sequence and that you staple them before
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the net income of the company. What are the differences between the LIFO and FIFO methods? D2: A variety of depreciation methods are used to allocate the cost of an asset to all of the accounting periods benefited by the use of the asset. Your client has just purchased a piece of equipment for $100‚000. Explain the concept of depreciation. Which of the following depreciation methods would y... For downloading more tutorials visit - https://bitly.com/12B12YQ Think carefully about
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Expenses – Allocating assets to expense to reflect expenses incurred during the period. Example: Recording supplies used by increasing (debiting) Supplies Expense and decreasing (crediting) Supplies or recording depreciation expense and reducing PPE (or increasing accumulated depreciation). 2. Unearned Revenues – Adjusting unearned revenues to recognize only revenues earned during the period. Example: Recording service fees earned by decreasing (debiting) Unearned Service Fees‚ a liability‚ and
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