property‚ plant and equipment‚ the amount will be carried at its cost less any accumulated depreciation and ant accumulated impairment losses. However under the Revaluation model‚ after recognition of an item of property‚ plant and equipment whose fair value can be measured reliably shall be carried at a revaluated amount‚ being it’s fair value at the dated of the revaluation less any subsequent accumulated depreciation and accumulated impairment losses. It also states that revaluation shall be done regularly
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Harnischfeger Corp case study 1. Describe clearly the accounting changes Harnischfeger made in 1984 as stated in Note 2 of its financial statements. Note 2 (pg. 17) states that in 1984 Harnischfeger changed their depreciation method that was being used to expense their plants‚ machinery and equipment from the direct method to the straight-line method for financial reporting purposes. An adjustment of the residual values on certain machinery and equipment was made. Harnischfeger also included
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The journal entry to record its purchase on January 1‚ 2008. (2) The journal entry to record annual depreciation at December 31‚ 2008‚ assuming the straight-line method of depreciation is used. (b) Calculate the amount of depreciation expense that Arlo should record for machine B each year of its useful life under the following assumption. (1) Arlo uses the straight-line method of depreciation. (2) Arlo uses the declining-balance method.The rate used is twice the straight-line rate. (3) Arlo
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000 $15‚000 Depreciation shield 11‚220 15‚300 5‚100 Net Cash Flow $26‚220 $30‚300 $20‚100 ==================== Notes: 1. The after-tax cost savings is $25‚000(1-T)=$25‚000(.6)=$15‚000. 2. The depreciation expense in each year is the depreciable basis‚ $85‚000 times the MACRS allowance percentage of .33‚ .45‚ and .15 for Years 1‚ 2‚ and 3. Depreciation expense in Years 1‚ 2‚ and 3 is $28‚050‚ $38‚250‚ and $12‚750. The depreciation shield is calculated
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Once the estimated depreciation expense for an asset is calculated: (Points : 1) | It may be revised based on new information | 6. When originally purchased‚ a vehicle had an estimated useful life of 8 years. The vehicle cost $23‚000 and its estimated salvage value is $1‚500. After 4 years of straight-line depreciation‚ the asset’s total estimated useful life was revised from 8 years to 6 years and there was no change in the estimated salvage value. The depreciation expense in year 5
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Once the estimated depreciation expense for an asset is calculated: (Points : 1) It may be revised based on new information 6. When originally purchased‚ a vehicle had an estimated useful life of 8 years. The vehicle cost $23‚000 and its estimated salvage value is $1‚500. After 4 years of straight-line depreciation‚ the asset’s total estimated useful life was revised from 8 years to 6 years and there was no change in the estimated salvage value. The depreciation expense in year 5 equals:
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American Greetings Corporation IFRS Implementation Property‚ Plant‚ and Equipment is the largest asset account for American Greetings‚ with a 2011 net balance of $241‚649‚000. American Greetings carries its property‚ plant and equipment at cost. Depreciation and amortization of buildings‚ equipment and fixtures are computed principally by the straight-line method over the useful lives of the various assets. The cost of buildings is depreciated over 40 years; computer hardware and software over 3 to
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COMM 217 FINANCIAL ACCOUNTING FALL 2012 Section (lecture): B Group Project Part 2 (of 2) Dorel Inc. Presented to: Prof. George Kanaan Date: November 22nd 2012 John Molson School of Business – Concordia University $ = thousands of U.S. dollars Chapter 8 8.1 Cost of Sales Equation = Beginning Inventory + Purchases - Ending Inventory 1 846 470 000 = 510 068 000 + 177 811 000 - 442 409 000 Purchases for the year 2011 total $65 812 530. 8.2 Dorel calculates costs of
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This paperwork - ACC 422 Week 3 Discussion Questions - consists of: DQ 1: What is the purpose of depreciation? Does the book value of a fixed asset (cost minus accumulated depreciation) communicate to a user what the asset is worth? Explain why or why not. Should the financial statements reflect the value of fixed assets? Explain why or why not. DQ 2: What is an intangible asset? Should all intangible assets be subject to amortization? Explain why or why not. Why are some
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-Simple Interest *Michael borrowed P30‚000 from bank savings. He was charged 12% simple interest and he paid it within 10 months. How much was the interest paid? -Rate *You invested P500 and received P650 after three years. What had been the interest rate -Principal *How much principal should you invest at 4% in order to have P3‚000 for a vacation to Europe in 3 years? -Final Amount *Find the final amount of the investment. P10‚000 invested at 6% compounded quarterly for 5 1/2 years
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