1- Multiple Choice Question 214 A company has the following assets: Buildings and Equipment‚ less accumulated depreciation of $2‚000‚000 $ 7‚600‚000 Copyrights 960‚000 Patents 4‚000‚000 Timberlands‚ less accumulated depletion of $2‚800‚000 4‚800‚000 The total amount reported under Property‚ Plant‚ and Equipment would be $16‚400‚000. $13‚360‚000. $12‚400‚000. $17‚360‚000. 2- Multiple Choice Question 144 Expenditures that maintain the operating efficiency and expected productive life
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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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Trinity Community Hospital has a five-year strategic plan for the hospital that includes creating a Regional Orthopedic Center. (Trinity Community Hospital‚ 2018) In the following summary‚ there will be a brief explanation on the advantages and disadvantages for building‚ buying or leasing space for this center. In conclusion‚ I will give my recommendation. 1 - There are many advantages to building‚ buying or leasing space for the Orthopedic Center. a. First‚ building on the hospital property will
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Accounting‚ “IFRS permits some capitalization of internally generated intangible assets” (Kieso‚ 712)‚ while “GAAP requires expensing of all costs associated with [them]” (712). Permissibility of capitalization leads to important advantages and disadvantages. Theoretically‚ IFRS capitalization is advantageous because the specific intangibles have value that last longer than a year. Research and development is the perfect example of the difference between the two methods used. Research is always expensed
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costs $12‚600‚000.00 $21‚600‚000.00 $25‚200‚000.00 $14‚400‚000.00 $10‚800‚000.00 Fixed costs $200‚000.00 $200‚000.00 $200‚000.00 $200‚000.00 $200‚000.00 Gross profit $8‚200‚000.00 $14‚200‚000.00 $16‚600‚000.00 $9‚400‚000.00 $4‚600‚000.00 Depreciation $1‚600‚000.00 $1‚600‚000.00 $1‚600‚000.00 $1‚600‚000.00 $1‚600‚000.00 net opearting income $6‚600‚000.00 $12‚600‚000.00 $15‚000‚000.00 $7‚800‚000.00 $3‚000‚000.00 Income taxes $2‚244‚000.00 $4‚284‚000.00 $5‚100‚000.00 $2‚652‚000.00 $1‚020
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changes Harnischfeger made in 1984 as stated in Note 2 of its financial statements. In the 1984 the corporation computed depreciation expense on plants‚ machinery and equipment by using the straight-line method for financial reporting purposes. These changes were made to provide a more equitable allocation of the cost of the plants. 2. What is the effect of the depreciation accounting method change on the reported income in 1984? How will this change affect profits in future years? Harnischfeger
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its founding‚ Lucas Stafford‚ the owner‚ decided to concentrate on one specialty line of printing. Because of a high degree of technical proficiency‚ the company experienced a rapid growth. However‚ Stafford Press suffered from a competitive disadvantage in that the major market for its specialized output was in a metropolitan area over 300 miles away from the company’s plant. For this reason‚ in 2003‚ having accumulated some extra cash to finance a move‚ the owner decided to move nearer to his
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Depreciation Accounting 1 Types of Long-Lived Assets y Tangible asset y Asset with physical substance y Property‚ plant‚ and equipment = fixed asset. y Intangible asset y Intellectual property. y No physical substance y Examples are patent rights‚ copyrights 2 Amortization y y View capital asset as bundle of services Similar to prepaid expenses‚ cost is expensed as company benefits from the services y y y y Land - no depreciation Plant and equipment - depreciation Natural
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Advantages and Disadvantages from the Amendments. Part D: Treasury Wine Estate and the impact of the Exposure Draft. Part E: Conclusion. Part F: Reference List. Part A: Introduction IRFS published the Exposure Draft 2013/8 Agriculture: Bearer Plants about the amendments of IAS 16 and IAS 41. The Exposure Draft has changed the definition and accounting standards of Bearer Plants. This report will focus on outline the main changes‚ the advantages & disadvantage and the impact
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ANSWER SHEET STUDENT’S SURNAME........................................... OTHER NAMES.......………......................................... STUDENT NUMBER....……….................................. TUTORIAL DAY & TIME........………................... TUTOR’S FULL NAME......................................... Test 1 – Version 2 Session 2‚ 2012 Course Code: ACCG 224 Course Name: INTERMEDIATE FINANCIAL ACCOUNTING Time allowed: 55 minutes plus 5 minutes reading time Total No. of questions:
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