Cannington, Inc., designs, manufactures, and markets personal computers and related software. The following information was taken from a recent annual report of Cannington: Property, Plant, and Equipment (in millions): Current Year Preceding Year Land and buildings $574,290 $333,088 Machinery, equipment, and internal-use software 545,576 430,718 Other fixed assets related to leases 694,891 522,604 Accumulated depreciation and amortization (729,348) (608,747) a. Compute the book value of the fixed assets for the current year and the preceding year. Current year book value Preceding year book value $4 A comparison of the book values of the current and preceding years indicates that they increased v A comparison of the total cost and accumulated depreciation reveals that Cannington purchased million of additional fixed assets, which was offset by the additional depreciation expense of $ million taken during the current year. b. Would you normally expect the book value of fixed assets to increase or decrease during the year? Increase V

Cannington, Inc., designs, manufactures, and markets personal computers and related software. The following information was taken from a recent annual report of Cannington: Property, Plant, and Equipment (in millions): Current Year Preceding Year Land and buildings $574,290 $333,088 Machinery, equipment, and internal-use software 545,576 430,718 Other fixed assets related to leases 694,891 522,604 Accumulated depreciation and amortization (729,348) (608,747) a. Compute the book value of the fixed assets for the current year and the preceding year. Current year book value Preceding year book value $4 A comparison of the book values of the current and preceding years indicates that they increased v A comparison of the total cost and accumulated depreciation reveals that Cannington purchased million of additional fixed assets, which was offset by the additional depreciation expense of $ million taken during the current year. b. Would you normally expect the book value of fixed assets to increase or decrease during the year? Increase V

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Description: Book Value of Fixed AssetsCannington, Inc., designs, manufactures, and markets personal computers and related software. The following information was taken from a recent annual report of Cannington:Property, Plant, and Equipment (in millions):Curren

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter7: Fixed Assets, Natural Resources, And Intangible Assets

Section: Chapter Questions

Problem 7.18E: Book value of fixed assets Apple. Inc., designs, manufactures, and markets personal computers...

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Book Value of Fixed Assets Cannington, Inc., designs, manufactures, and markets personal computers and related software. The following information was taken from a recent annual report of Cannington: Property, Plant, and Equipment (in millions): Current Year Preceding Year Land and buildings $736,390 $427,106 Machinery, equipment, and internal-use software 699,571 552,293 Other fixed assets related to leases 891,032 670,115 Accumulated depreciation and amortization (935,215) (780,573) a. Compute the book value of the fixed assets for the current year and the preceding year. Current year book value $fill in the blank 1 Preceding year book value $fill in the blank 2 A comparison of the book values of the current and preceding years indicates that they . A comparison of the total cost and accumulated depreciation reveals that Cannington purchased $fill in the blank 4 million of additional fixed assets, which was offset by the additional…
Cannington, Inc., designs, manufactures, and markets personal computers and related software. The following information was taken from a recent annual report of Cannington: Property, Plant, and Equipment (in millions): Current Year Preceding Year Land and buildings $705,360 $409,109 Machinery, equipment, and internal-use software 670,092 529,020 Other fixed assets related to leases 853,486 641,878 Accumulated depreciation and amortization (895,807) (747,682) a. Compute the book value of the fixed assets for the current year and the preceding year. Current year book value $fill in the blank 1 Preceding year book value $fill in the blank 2 A comparison of the book values of the current and preceding years indicates that they . A comparison of the total cost and accumulated depreciation reveals that Cannington purchased $fill in the blank 4 million of additional fixed assets, which was offset by the additional depreciation expense of $fill…
Cannington, Inc., designs, manufactures, and markets personal computers and related software. The following information was taken from a recent annual report of Cannington industries: Property, Plant, and Equipment (in millions): Current Year Preceding Year Land and buildings $736,180 $426,984 Machinery, equipment, and internal-use software 699,371 552,135 Office furniture and equipment 110,427 95,703 Other fixed assets related to leases 890,778 669,924 Accumulated depreciation and amortization (934,949) (780,351) a. Compute the book value of the fixed assets for the current year and the preceding year. Current year book value $ Preceding year book value $ b. Would you normally expect the book value of fixed assets to increase or decrease during the year?
Trinkle Company, Incorporated made several purchases of long-term assets in Year 1. The details of each purchase are presented here. New Office Equipment List price: $36,100; terms: 2/10 n/30; paid within discount period. Transportation-in: $740. Installation: $580. Cost to repair damage during unloading: $615. Routine maintenance cost after six months: $260. Basket Purchase of Copier, Computer, and Scanner for $51,900 with Fair Market Values Copier, $22,500. Computer, $11,250. Scanner, $28,750. Land for New Warehouse with an Old Building Torn Down Purchase price, $75,700. Demolition of building, $5,070. Lumber sold from old building, $1,090. Grading in preparation for new building, $8,000 Construction of New Building Construction of new building, $231,000 RequiredIn case of office equipment, determine the amount of cost to be capitalized in the asset accounts. In case of basket purchase, determine the amount of cost to be capitalized in the asset accounts. In case of land,…
Plant and Equipment Your analysis of Moen Corporation's fixed asset accounts at yearend reveals the following information:1. Moen owns two tracts of land. The first, which cost $18,000, is being held as afuture building site. It has a current market value of $20,000. The second, whichcost $19,000, was purchased 10 years ago. The current office and factorybuildings are on this site. The land has a current market value of $56,000.2. Moen owns two buildings. The office building and the factory building wereboth built 10 years ago at a cost of $50,000 and $120,000, respectively. At thattime, each was expected to have a life of 30 years and a residual value of 10% oforiginal cost. They are being depreciated on a straight-line basis.3. Moen owns factory machinery with a total cost of $51,000 and accumulateddepreciation of $35,300. Included in factory machinery is one machine that cost$7,000 and has accumulated depreciation of $4,200. This machine is being heldfor resale and is not being used…
Bluestone Company had three intangible assets at the end of the current year: A patent purchased this year from Miller Company on January 1 for a cash cost of $1,600. When purchased, the patent had an estimated life of 8 years. A trademark was registered with the federal government for $10,000. Management estimated that the trademark could be worth as much as $240,000 because it has an indefinite life. Computer licensing rights were purchased this year on January 1 for $42,000. The rights are expected to have a six-year useful life to the company. Required: Compute the acquisition cost of each intangible asset. Compute the amortization of each intangible for the current year ended December 31. Show how these assets and any related expenses should be reported on the balance sheet and income statement for the current year.
Trinkle Co., Inc. made several purchases of long-term assets in Year 1. The details of each purchase are presented here. New Office Equipment List price: $35,300; terms: 2/10 n/30; paid within discount period. Transportation-in: $790. Installation: $570. Cost to repair damage during unloading: $660. Routine maintenance cost after eight months: $240. Basket Purchase of Copier, Computer, and Scanner for $46,400 with Fair Market Values Copier, $23,478. Computer, $8,944. Scanner, $23,478. Land for New Warehouse with an Old Building Torn Down Purchase price, $77,500. Demolition of building, $4,540. Lumber sold from old building, $1,570. Grading in preparation for new building, $9,600. Construction of new building, $235,000. Required In each of these cases, determine the amount of cost to be capitalized in the asset accounts.
Title Prepare journal entries for each of the following transactions or events for Liu Cybersystems: Description Journal entries for depreciation and amortization expense Prepare journal entries for each of the following transactions or events for Liu Cybersystems: (a) Acquired computers costing $800 000 and software costing $80 000 on 1 January 2011. Liu expects the computers to have a service life of 10 years and $80 000 residual value. The software is expected to have a service life of four years and zero residual value. (b) Paid $40 000 to install the computers at Liu’s office. Paid $20 000 to test the software. (c) Liu records depreciation and amortization expense for the computers and the computer software using the straight-line method for 2011 and 2012.
TLM Technologies had these transactions related to intangible assets during the year. Jan. 2 Purchased a patent from Luna Industries for $200,000. The remaining legal life of the patent is 15 years, and TLM expects the patent to be useful for 8 years. Jan. 5 Paid legal fees in a successful legal defense of the patent of $80,000. June 29 Registered a trademark with the federal government. Registration costs were $11,800. TLM expects to use the trademark indefinitely. Sept. 2 Paid research and development costs of $500,000. Required: 1. Prepare the journal entries necessary to record the transactions. If no entry is required, select "No entry required" and leave the amount boxes blank. If an amount box does not require an entry, leave it blank. Jan. 2 fill in the blank 3a5c77f4ffe0ff9_2 fill in the blank 3a5c77f4ffe0ff9_3 fill in the blank 3a5c77f4ffe0ff9_5 fill in the blank 3a5c77f4ffe0ff9_6 Jan. 5 fill in the blank 3a5c77f4ffe0ff9_8 fill in the blank…
Inclusion in Property, Plant, and Equipment Guthrie Inc. must determine whether the following items are included in property, plant, and equipment: a. idle equipment awaiting sale b. machinery kept on hand and used only when other machinery breaks c. land held for investment d. the right to publish a literary work e. progress payments on a building being constructed by a contractor f. fully depredated assets still being used g. expenditures to improve leased property h. equipment leased to others i. purchase of an asset with an expected life of 9 months j. obligation to remove leasehold improvement at the termination of a lease Required: 1. Indicate which items are included in the cost of property, plant, and equipment and which items are excluded from the cost of property, plant, and equipment. 2. Next Level For each item excluded from property, plant, and equipment, explain why it was excluded.
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