GB 112/212 MANAGERIAL ACC. W/ACCESS >C<
17th Edition
ISBN: 9781260218831
Author: Libby
Publisher: MCG CUSTOM
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Chapter 8, Problem 8.2AP
1.
To determine
Complete the following table by indicating the effects for the preceding expenditures for the current year.
2.
To determine
Ascertain the book value of the building on December 31 of the sixth year.
3.
To determine
Explain the effects of
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Required information
E8-4 (Algo) Determining Financial Statement Effects of an Asset
Acquisition and Depreciation (Straight-Line Depreciation) LO8-2, 8-3
[The following information applies to the questions displayed below.]
During Year 1, Ashkar Company ordered a machine on January 1 at an invoice price
of $26,000. On the date of delivery, January 2, the company paid $7,000 on the
machine, with the balance on credit at 11 percent interest due in six months. On
January 3, it paid $1,100 for freight on the machine. On January 5, Ashkar paid
installation costs relating to the machine amounting to $2,700. On July 1, the
company paid the balance due on the machine plus the interest. On December 31
(the end of the accounting period), Ashkar recorded depreciation on the machine
using the straight-line method with an estimated useful life of 10 years and an
estimated residual value of $4,000.
E8-4 Part 3
3. Compute the depreciation expense to be reported for Year 1.
Depreciation expense
Required information
E8-3 (Algo) Computing and Recording Cost and Depreciation of Assets (Straight-Line Depreciation) LO8-
2,8-3
[The following information applies to the questions displayed below.]
Shahia Company bought a building for $79,000 cash and the land on which it was located for $109,000 cash. The
company paid transfer costs of $17,000 ($7,000 for the building and $10,000 for the land). Renovation costs on the
building before it could be used were $18,000.
E8-3 Part 3
3. Determine the net book value of the property (land and building) at the end of year 2.
Note: Amounts to be deducted should be indicated by a minus sign.
Land
Net book value of property at end of Year 2
Building
Accumulated depreciation
Net book value
$
0
Required information
E8-3 (Algo) Computing and Recording Cost and Depreciation of Assets (Straight-
Line Depreciation) LO8-2, 8-3
[The following information applies to the questions displayed below.]
Shahia Company bought a building for $87,000 cash and the land on which it was located for
$123,000 cash. The company paid transfer costs of $15,000 ($6,000 for the building and $9,000
for the land). Renovation costs on the building before it could be used were $32,000.
E8-3 Part 2
2. Compute straight-line depreciation at the end of one year, assuming an estimated 10-year useful life and a
$18,000 estimated residual value.
Straight-line depreciation
Chapter 8 Solutions
GB 112/212 MANAGERIAL ACC. W/ACCESS >C<
Ch. 8 - Define long-lived assets. Why are they considered...Ch. 8 - Prob. 2QCh. 8 - What are the classifications of long-lived assets?...Ch. 8 - Prob. 4QCh. 8 - Describe the relationship between the expense...Ch. 8 - Prob. 6QCh. 8 - Prob. 7QCh. 8 - In computing depreciation, three values must be...Ch. 8 - The estimated useful life and residual value of a...Ch. 8 - Prob. 10Q
Ch. 8 - Prob. 11QCh. 8 - Prob. 12QCh. 8 - Prob. 13QCh. 8 - Prob. 14QCh. 8 - Prob. 15QCh. 8 - Why is depreciation expense added to net income...Ch. 8 - Miga Company and Porter Company both bought a new...Ch. 8 - Leslie, Inc.. followed the practice of...Ch. 8 - Prob. 3MCQCh. 8 - Prob. 4MCQCh. 8 - Prob. 5MCQCh. 8 - Prob. 6MCQCh. 8 - Prob. 7MCQCh. 8 - Prob. 8MCQCh. 8 - Prob. 9MCQCh. 8 - (Chapter Supplement) Irish Industries purchased a...Ch. 8 - Prob. 8.1MECh. 8 - Prob. 8.2MECh. 8 - Prob. 8.3MECh. 8 - Prob. 8.4MECh. 8 - Computing Book Value (Double-Declining-Balance...Ch. 8 - Computing Book Value (Units-of-Production...Ch. 8 - Identifying Asset Impairment LO8-4 For each of the...Ch. 8 - Prob. 8.8MECh. 8 - Prob. 8.9MECh. 8 - Prob. 8.10MECh. 8 - Prob. 8.1ECh. 8 - Prob. 8.2ECh. 8 - Computing and Recording Cost and Depreciation of...Ch. 8 - Determining Financial Statement Effects of an...Ch. 8 - Determining Financial Statement Effects of an...Ch. 8 - Recording Depreciation and Repairs (Straight-Line...Ch. 8 - Prob. 8.7ECh. 8 - Prob. 8.8ECh. 8 - Computing Depreciation under Alternative Methods...Ch. 8 - Computing Depreciation under Alternative Methods...Ch. 8 - Prob. 8.11ECh. 8 - Prob. 8.12ECh. 8 - Prob. 8.13ECh. 8 - Computing Depreciation and Book Value for Two...Ch. 8 - Prob. 8.15ECh. 8 - Recording the Disposal of an Asset at Three...Ch. 8 - Prob. 8.17ECh. 8 - Prob. 8.18ECh. 8 - Prob. 8.19ECh. 8 - Prob. 8.20ECh. 8 - Prob. 8.21ECh. 8 - Prob. 8.22ECh. 8 - (Chapter Supplement) Recording a Change in...Ch. 8 - Prob. 8.24ECh. 8 - Prob. 8.25ECh. 8 - Explaining the Nature of a Long-Lived Asset and...Ch. 8 - Analyzing the Effects of Repairs, an Addition, and...Ch. 8 - Prob. 8.3PCh. 8 - Best Buy Co., Inc., headquartered in Richfield,...Ch. 8 - Evaluating the Effect of Alternative Depreciation...Ch. 8 - Recording and Interpreting the Disposal of Three...Ch. 8 - Prob. 8.7PCh. 8 - Prob. 8.8PCh. 8 - Computing Goodwill from the Purchase of a Business...Ch. 8 - Prob. 8.10PCh. 8 - Prob. 8.11PCh. 8 - Explaining the Nature of a Long-Lived Asset and...Ch. 8 - Prob. 8.2APCh. 8 - Computing the Acquisition Cost and Recording...Ch. 8 - Prob. 8.4APCh. 8 - Recording and Interpreting the Disposal of Three...Ch. 8 - Prob. 8.6APCh. 8 - Prob. 8.7APCh. 8 - Asset Acquisition, Depreciation, and Disposal Pool...Ch. 8 - Case A. Dr Pepper Snapple Croup, Inc., is a...Ch. 8 - Prob. 8.1BCOMPCh. 8 - Prob. 8.1CCOMPCh. 8 - Case D. Stewart Company reports the following...Ch. 8 - Case E. Matson Company purchased the following on...Ch. 8 - Prob. 8.1CPCh. 8 - Finding Financial Information LO8-1, 8-2, 8-6...Ch. 8 - Comparing Companies within an Industry Refer to...Ch. 8 - Prob. 8.4CPCh. 8 - Prob. 8.5CPCh. 8 - Prob. 8.6CPCh. 8 - Evaluating the Impact of Capitalized Interest on...
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