Qstn. No.1: Calculate the annual depreciation expense that Delta and Singapore Airlines would record for each $100 gross value of Aircraft. a. For Delta‚ what was its annual depreciation expenses (per $100 of gross aircraft value) prior to July 1‚ 1986‚ From July 1‚ 1986 through March 31‚ 1993 and from April 1st‚ 1993 on? b. For Singapore‚ what was its annual depreciation expense (per $100 of Gross aircraft value) prior to April1‚ 1989 and from April 1‚1989 on? | | | | Delta Airlines
Premium Depreciation
the following: a. prescription of the period of assessment and collection b. error in disallowing claimed depreciations (upon these supplemented facts) i. Basilan Estates‚ Inc. claimed deductions for the depreciation of its assets up to 1949 on the basis of their acquisition cost. ii. Accordingly‚ from 1950 to 1953 it deducted from gross income the value of depreciation computed on the reappraised value. iii. Upon investigation and examination of taxpayer’s books and papers‚ the
Premium Depreciation Tax Taxation in the United States
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
Premium Depreciation
Cash Flow Statement When fixed assets are sold‚ by definition‚ money is‚ or will be received. The result is entries to Cash or Accounts Receivable. You must also make entries to remove the Asset from the books and to remove any Accumulated Depreciation on the books for that Asset. The result is that the sum of the debits will not equal the credits in this transaction. The account that will be used to balance the debits and credits is called Gain on Disposition of Fixed Assets. The following
Premium Generally Accepted Accounting Principles Depreciation Income statement
500 102‚850 Incr $9‚650 subtract (-) Prepaid Expenses 28‚400 26‚000 Incr $2‚400 subtract (-) Investments 138‚000 114‚000 Incr $24‚000 Plant assets 270‚000 242‚500 Incr $27‚500 Less: Accumulated depreciation (50‚000) (52‚000) Decr $2‚000 Total $ 682‚500 $ 514‚750 Liabilities and Stockholders’ Equity: Accounts Payable $ 112‚000 $ 67‚300 Incr $44‚700 add (+) Accrued expenses payable 16‚500 17‚000 Decr $500 subtract
Premium Generally Accepted Accounting Principles Balance sheet Depreciation
Revenues = 100K in year one‚ increasing by 10% each year 2) Expenses = 20K in year one‚ increasing by 15% each year 3) Depreciation Expense = 5K each year 4) Tax Rate = 25% 5) Discount Rate = 10% b. Corporation B: 1) Revenues = 150K in year one‚ increasing by 8% each year 2) Expenses = 60K in year one‚ increasing by 10% each year 3) Depreciation Expense = 10K each year 4) Tax Rate = 25% 5) Discount
Premium Net present value
associated with each. As we advanced into Week Two‚ we studied how to differentiate among accounts payable‚ notes payable and accrued expenses‚ methods to properly prepare necessary journal entries to record the issuance of bonds‚ the periodic interest‚ and amortization of bond premiums and discounts‚ and finally the procedures to calculate depreciation and amortization expense using various methods. Learning Team "A" - Week Two Summary When it comes to preparing journal entries‚ there are different
Premium
qualitative characteristic is comparability; consistency is considered part of comparability). EXERCISE 2-5 (10–15 minutes) (a) Liabilities. (b) Equity. (c) Equity. (d) Income. (e) Assets. (f) Income‚ expenses. (g) Equity. (h) Income. (i) Equity. EXERCISE 2-6 (15–20 minutes) (a) 8. Expense recognition principle. (b) 6. Cost principle. (c) 9. Full disclosure principle. (d) 2. Going concern assumption. (e) 10. Revenue recognition principle. (f) 1. Economic entity assumption. (g) 4
Premium Generally Accepted Accounting Principles Revenue Balance sheet
$12‚000‚000 | Expenses: | Other Than Depreciation (75% of revenue) | $8‚000‚000 | Depreciation Expense | $1‚500‚000 | Net Income | | $2‚500‚000 | b. Net Income is $2.5M as shown in part a. The Total Profit Margin is Net Income ($2.5M)/ total revenues ($12M) = Total Margin of 0.208 (20.8%). The cash flow is the net income plus the depreciation costs‚ thus $1.5M (Depreciation Expense) + $2.5M (Net Income) = Cash Flow of $4.0M. c. If the depreciation expense doubled then the
Premium Depreciation Generally Accepted Accounting Principles Revenue
(Accounts Receivable‚ Inventory‚ Long-lived Assets‚ Bonds) 1. GNC has the following information regarding the inventory of its Super Mega‚ a multivitamins. Assume GNC uses periodic inventory system each quarter and FIFO. a. On July 1‚ GNC had 200 bottles of Super Mega in stock. Each bottle costs $3. b. On July 15‚ GNC purchased 5‚000 bottles of Super Mega for $25‚000 from a supplier‚ paid $10‚000 in cash and the rest was on credit. c. On August 15‚ GNC purchased another 1‚000 bottles of Super
Premium Depreciation Generally Accepted Accounting Principles Accounts receivable