lessee. c 29. Knowledge of the capitalization criteria. d 30. Components of minimum lease payments. d 31. Identification of executory costs. c 32. Discount rate used by lessee. a 33. Depreciation of a leased asset by lessee. b 34. Effect of a capital lease on lessee’s debt. a P35. Depreciation of a capital lease. a 36. Identification of lease type for lessor. d 37. Elements of lease receivable by lessor. a 38. Recognition of unearned lease income. c S39. Direct-financing lease
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Dep. Machine and Equip- Business reason: had more machines and thus higher depreciation; client error: Not using the correct depreciation rates (too high for purchases) Auto Equip- Business reason: Purchased company car (sedan); Client error: classified personal automotive expenses to the company Acc Dep. Auto Equip- Business reason: More cars increased the depreciation amount; client error: not using the correct depreciation rates (too high to justify purchase) Accounts Payable- Business reason: Purchased
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2 3 4 5 6 7 8 9 mental Earnings Forecast ($000s) Sales of Mini Mochi Munch 9‚000 7‚000 Other Sales 2‚000 2‚000 Cost of Goods Sold (7‚350) (6‚050) 3 4 5 6 Gross Profit 3‚650 2‚950 Selling‚ General & Admin. (5‚000) - Depreciation - - 7 8 9 EBIT (1‚350) 2‚950 Income tax at 35% 473 (1‚033) 10 11 Unlevered Net Income (878) 1‚918 7-9. Elmdale Enterprises is deciding whether to expand its production facilities. Although long-term
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or as a noncash (NC) transaction reported in a separate schedule‚ and (2) represents a cash inflow or cash outflow or has no cash flow effect. Assume use of the indirect approach. Transaction Where Reported Cash Inflow‚ Outflow‚ or No Effect? Depreciation expense on the plant assets Noncash (NC) Inflow Paid interest expense. Investing (I) Outflow Cash from a sale of plant assets. Investing (I) Inflow Acquired land by issuing common stock. Noncash (NC) No Effect Paid a cash dividend
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without showing the related debt. Companies improve the utilization of their assets via leasing since they can add capacity‚ as needed‚ a lot more easily by leasing rather than committing to own the assets. • They show no interest expense or depreciation in the income statement‚ although both of these are part of the “lease expense” account that does run through the income statement. • They avoid certain risks of ownership such as technological obsolescence‚ physical deterioration‚ etc.
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Student ID: 7608756 FACC Assignment FACC/Jul11/1 Ryan Marc Gonsalves Ryan Marc Gonsalves MBSW 60127 FINANCIAL ACCOUNTING FACC/JULY11/1 Student ID: 7608756 Table of Contents Table of Tables .................................................................................................................... 3 Table of Figures ................................................................................................................... 3 Introduction and Purpose ................
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| Ruckman‚ Inc.: Converting from U.S. GAAP to IFRS | ACTG 4240 – Assignment #4 | | Fannie Fang‚ Yingqi Gu‚ Ya Wang | 1/24/2013 | | Ruckman Part I Solutions Page 1. For each of the 16 items listed below‚ briefly describe the difference in GAAP treatment and IFRS treatment. Just start with this form and type in your responses in the appropriate cells. You don’t need to give too much detail‚ just enough so your client can tell the difference. 2. In the “Needed to Convert
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would be allocated for the Algerine War due to the possibility of the ships being in the dockyard rather than in full service. Jefferson was simply allocating the costs of the war in terms of accounting allocations per asset capitalization and depreciation. 3) Evaluate Jefferson’s reasoning in his 1822 letter. Do you agree with his logic? This letter does not specifically identify the cost of building the fleet‚ but it does compare the construction cost to the cost of maintaining the fleet
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omissions of previous years but it does not include correction of accounting estimates made in earlier years. 5. AS 6: Depreciation Accounting- * It states the amount of depreciation of some assets to be charged. It is calculated using the Straight Line Method‚ Written down Value or any other method carefully selected. When the method of calculating depreciation is changed it must be applied to all previous years and deficiency or surplus due to change must be adjusted in the profit and
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controller’s bonus is based on the next income. It is the controller’s belief that the switch in inventory methods would increase 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 equipm... Follow the link Now for full guide - https://bitly.com/1oJLnk3 When
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