GB 112/212 MANAGERIAL ACC. W/ACCESS >C<
17th Edition
ISBN: 9781260218831
Author: Libby
Publisher: MCG CUSTOM
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Chapter 8, Problem 8.4CP
1.
To determine
Ascertain the best estimate of the average expected life for Corporation S’s
2.
To determine
Ascertain the best estimate of the average age of Corporation S’s depreciable assets.
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Chevalier Company has identified five industry segments: plastics, metals, lumber, paper, and finance.
It appropriately consolidated each of these segments in producing its annual financial statements. Information describing each
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Intersegment sales
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Interest income from intersegment loans
Operating expenses
Interest expense
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Intangible assets
Intersegment loans (debt)
Plastics
$ 6,694
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$ 2,354
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$ 711
148
173
138
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$ 422
150
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$ 0
0
0
34
21
0
42
0
0
0
0
201
4,214
76
1,762
1,066
654
31
31
66
28
102
1,501
87
3,196
524
771
179
0
403
0
0
63
0
0
0
706
Chevalier does not allocate its $1,460,000 in common expenses to the various segments.
Required:
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a3. Perform asset test…
Ecru Company has identified five industry segments: plastics, metals, lumber, paper, and finance.
It appropriately consolidated each of these segments in producing its annual financial statements. Information describing each
segment (in thousands) follows:
Sales to outside parties
Intersegment transfers
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Interest income from intersegment loans
Operating expenses
Interest expense
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Intangible assets
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Plastics
$6,855
163
a. Revenue test:
b. Profit or loss test:
c. Asset test:
0
0
4,334
82
1,577
93
0
Metals
$2,414
185
40
0
1,822
37
3,256
415
0
Lumber
$ 741
150
27
0
1, 126
72
584
0
0
Ecru does not allocate its $1,400,000 in common expenses to the various segments.
Perform testing procedures to determine Ecru's reportable operating segments.
Paper Finance
$ 452
162
0
0
684
22
831
69
0
0
48
213
37
108
209
0
718
Ecru Company has identified five industry segments: plastics, metals, lumber, paper, and finance.
It appropriately consolidated each of these segments in producing its annual financial statements. Information describing each
segment (in thousands) follows:
Sales to outside parties
Intersegment transfers
Interest income from outside parties
Interest income from intersegment loans
Operating expenses
Interest expense
Tangible assets
Intangible assets
Intersegment loans (debt.)
Plastics
$6,870
a. Revenue test:
163
0
0
4,354
83
1,567
94
Metals
$2,419
186
41
0
1,832
38
3,261
416
0
Lumber
$ 746
151
28
0
1,136
73
589
0
0
Ecru does not allocate its $1,360,000 in common expenses to the various segments. "
Perform testing procedures to determine Ecru's reportable operating segments.
Paper Finance
$ 457 $0
163
0
0
689
20
836
70
0
0
49
214
38
109
214
0
719
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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