Concept Introduction:
Depreciation is referred to as the process of reduction in the value of assets due to normal usage over time. It is non-cash expense for the company.
Requirement 1
To Calculate: the depreciation expense on building reported by “P”.
b.
Concept Introduction:
Depreciation
Depreciation is referred to as the process of reduction in the value of assets due to normal usage over time. It is non-cash expense for the company.
Requirement 2
To Calculate: the depreciation expense on building reported by “S”.
c.
Concept Introduction:
Elimination Entries
Eliminating entries are required to pass when investment and other holdings are eliminating in some cases. It is the
Requirement 3
ToPrepare: the elimination entry for completing consolidated financial statement.
d.
Concept Introduction:
Requirement 4
Non-Controlling Interest
Non-controlling interest is held by subsidiary company. It is also known as minority interest. Subsidiary company is considered as the company that is owned or influenced by a holding company.
To calculate: The income assign to non-controlling interest.
e.
Concept Introduction:
Non-Controlling Interest
Non-controlling interest is held by subsidiary company. It is also known as minority interest. Subsidiary company is considered as the company that is owned or influenced by a holding company.
Requirement 5
To Calculate:the income assign to non-controlling interest.
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ADVANCED FINANCIAL ACCOUNTING IA
- Bliss Company owns an asset with an estimated life of 15 years and an estimated residual value of zero. Bliss uses the straight -line method of depreciation. At the beginning of the sixth year, the assets book value is 200,000 and Bliss changes the estimate of the assets life to 25 years, so that 20 years now remain in the assets life. Explain how this change will be accounted for in Blisss financial statements, and compute the current and future annual depreciation expense.arrow_forwardOn May 1, 2015, Zoe Inc. purchased Branta Corp. for $15,000,000 in cash. They only received $12,000,000 in net assets. In 2016, the market value of the goodwill obtained from Branta Corp. was valued at $4,000,000, but in 2017 it dropped to $2,000,000. Prepare the journal entry for the creation of goodwill and the entry to record any impairments to it in subsequent years.arrow_forwardThe following intangible assets were purchased by Hanna Unlimited: A. A patent with a remaining legal life of twelve years is bought, and Hanna expects to be able to use it for six years. It is purchased at a cost of $48,000. B. A copyright with a remaining life of thirty years is purchased, and Hanna expects to be able to use it for ten years. It is purchased for $70,000. Determine the annual amortization amount for each intangible asset.arrow_forward
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