accounting concept? A) B) C) D) 2) Going concern. Historical cost. Consistency. Prudence. Which statement relating to depreciation is true? A) The cash account is affected by charging depreciation B) Accumulated depreciation represents the portion of an asset’s cost that has been transferred to depreciation expense C) Accumulated depreciation is a contra-expense account D) Depreciation represents cash that can be used to replace assets when they wear out 3) As at 31 December 2010 there are outstanding
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$121‚000 Accounts receivable 83‚200 Allowance for doubtful accounts 13‚300 Inventory 74‚200 Prepaid expenses 17‚800 Investment in subsidiary (equity method) 20‚000 Plant and equipment 210‚000 Accumulated depreciation 130‚000 Accounts payable 80‚700 Accrued liabilities 21‚500 Deferred tax liability 15‚500 8% serial bonds 80‚000 Common stock‚ $10 par 90‚000 Additional paid-in capital 150‚000 Retained earnings—Appropriation
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flow statement 40 10-18 Inventory appraisal system 15 10-19 Composite amortization system 15 10-20 Composite amortization system 25 10-21 Amortization systems 25 10-22 Accounting for capital assets 45 continued ... Assignment 10-23 Depreciation and depletion—schedule‚ entries (*W) 25 10-24 Asset impairment – five situations 20 10-25 Asset impairment 15 10-26 Asset impairment (*W) 20 10-27 Asset group impairment 15 10-28 Asset group impairment 15 10-29 Capital asset impairment
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Chapter 9 Property Acquisition and Cost Recovery McGraw-Hill Connect Homework Answers 40. [LO 1] Emily purchased a building to store inventory for her business. The purchase price was $760‚000. Beyond this‚ Emily incurred the following necessary expenses to get the building ready for use: $10‚000 to repair the roof‚ $5‚000 to make the interior suitable for her finished goods‚ and $300 in legal fees. What is Emily’s cost basis in the new building? $765‚300 cost basis‚ computed
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Exam training Case 1 Chapter 1 Basics of financial reporting Chapter 2 International accounting differences Chapter 3 The process of harmonization Case 1 Case of Sanofi – Aventis Case “Old habits die hard” Case 2 Chapter 11 Basics of interpretation of financial statements Chapter 30 Interpretation of financial statements Chapter 31 Techniques of financial analysis Calculate ratios and conduct the analysis Case 2 Calculate Profitability
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recognizing revenues? Why or why not? Case 3: Depreciation at Delta and Singapore Airlines Presentation date: Dec 3 1. Calculate the annual depreciation expense that Delta and Singapore would record for each $100 gross value of aircraft. (a) For Delta‚ what was its annual depreciation expense (per $100 of gross aircraft value) prior to July 1‚ 1986; from July 1‚ 1986 through march 31‚ 1993; and from April 1‚ 1993 on ? (b) For Singapore‚ what was its annual depreciation expense (per $100 of gross aircraft value)
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Chapter 10 Property: Dispositions SOLUTIONS MANUAL Discussion Questions: 1. [LO 1] Compare and contrast different ways in which a taxpayer triggers a realization event by disposing of an asset. A realization event for tax purposes is created in many ways. Virtually any disposal will result in a sale or other disposition. These include a sale‚ trade‚ gift to charity‚ disposal to the landfill‚ or destruction in a natural disaster. In a sale or trade (exchange)‚ the taxpayer receives something
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market value; 3. Identifying and forecasting incremental expected cash flows‚ including initial and ongoing capital expenditures‚ investment in net working capital‚ and proceeds from asset sales; 4. Understanding the tax consequences of depreciation and asset sales; 5. Evaluating whether a policy of reselling or scrapping a vessel is most valuable. Guideline questions to cover in the case analysis: 1. What is the key issue addressed in this case? Or in other words‚ what is the
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Cash Flow Assumption (No Lamination) We have taken the pro-‐forma financial statements as is and have extended them forward by 5 years under the following assumptions. Item Assumption Basis The capacity of the plant is 40‚000 and to be conservative we have taken the 1984 level that
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Chapter 1 Even numbered discussion questions from page 20 & 21 #2What type of partnership allows some of the investors to limit their Liability? Explain. A limited partnership allows some investors to limit their liability. With a limited partnership some partners are known as general partners and have unlimited liability for any debts the company may have. The other partners of the company are called limited partners. This means they are only responsible for their initial contribution
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