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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1. The final exam will be held from 9:30 to 11:30 am on Wednesday‚ October 19 in EX 200 (255 McCaul). 2. It is a closed book and closed note exam. No aid sheet is allowed. You will need a calculator‚ but no other electronic devices will be allowed during the exam. 3. The exam covers materials in classes 1 through 11 inclusive (i.e.‚ topics 1 through 8)‚ with more emphasis on topics 3 through 8. It will have both problem-solving and essay-type questions. It is not going to be an easy exam
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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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made this entry to air on the side of caution. (d) Because the general level of prices increased during the current year‚ Gonzales‚ Inc. determined that there was a $16‚000 understatement of depreciation expense on its equipment and decided to record it in its accounts. Depreciation Expense
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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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Statement of Cash Flows Preview of Chapter Usefulness and Format Usefulness of the Statement of Cash Flows Provides information to help assess: 1. Entity’s ability to generate future cash flows. 2. Entity’s ability to pay dividends and obligations. 3. Reasons for difference between net income and net cash provided (used) by operating activities. 4. Cash investing and financing transactions during the period. SO 1 Indicate the usefulness of the statement of cash flows. Usefulness
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Testbank to accompany Applying International Financial Reporting Standards 3e By Prepared by John Sweeting and Emma Holmes John Wiley & Sons Australia‚ Ltd 2013 Chapter 25 Consolidation: intragroup transactions Learning Objectives Learning Objective 25.1 Explain the need for making adjustments for intragroup transactions Learning Objective 25.2 Prepare worksheet entries for intragroup transactions involving profits and losses in beginning and ending inventory Learning Objective
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Depreciation is an expense that indicates the decrease in value of a fixed asset over a period of time. The cost price minus the asset’s depreciation calculates the carrying value of the asset. Depreciation is accounted for in order to know the carrying value of a vehicle and to help when determining the price at which the business should sell the vehicle. 2. F 3. Besides model‚ describe FOUR other factors that influence the price of a second hand car. - The price may be determined by the kilometers
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could make a more specific estimate for uncollectable accounts. Problem 3 Example A Example B Original cost 4‚500‚000 Original cost 4‚500‚000 Useful life 10 Useful life 6 Residual Value 500‚000 Residual Value 500‚000 Depreciation per Year: 400‚000 Depreciation per Year: 666‚666.67 Year of Disposal 5 Year of Disposal 5 Problem 4 & 5 Company A Tropical Wave Corporation Partial Income Statement For the Year Ended December 31 Sales: Water Sports Equipment $4‚500‚000 Lotion
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