Access the FASB Accounting Standards Codification at the FASB website (www.fasb.org). Determine the specific citation for each of the following items:1. Depreciation involves a systematic and rational allocation of cost rather than a process of valuation2. The calculation of an impairment loss for property, plant, and equipment3. Accounting for a change in depreciation method4. Goodwill should not be amortizedBelltone Company made the following expenditures related to its 10-year-old manufacturing facility:1. The heating system was replaced at a cost of $250,000. The cost of the old system was not known. The company accounts for improvements as reductions of accumulated depreciation.2. A new wing was added at a cost of $750,000. The new wing substantially increases the productive capacity ofthe plant.3. Annual building maintenance was performed at a cost of $14,000.4. All of the equipment on the assembly line in the plant was rearranged at a cost of $50,000. The rearrangementclearly increases the productive capacity of the plant.Required:Prepare journal entries to record each of the above expenditures.
Access the FASB Accounting Standards Codification at the FASB website (www.fasb.org). Determine the specific citation for each of the following items:
1.
2. The calculation of an impairment loss for property, plant, and equipment
3. Accounting for a change in depreciation method
4.
Belltone Company made the following expenditures related to its 10-year-old manufacturing facility:
1. The heating system was replaced at a cost of $250,000. The cost of the old system was not known. The company accounts for improvements as reductions of accumulated depreciation.
2. A new wing was added at a cost of $750,000. The new wing substantially increases the productive capacity of
the plant.
3. Annual building maintenance was performed at a cost of $14,000.
4. All of the equipment on the assembly line in the plant was rearranged at a cost of $50,000. The rearrangement
clearly increases the productive capacity of the plant.
Required:
Prepare
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