Depreciation

dramatically increased and I feel confident in my works presented. I can carry forward this knowledge and use it as a base for my future accounting career. I can now make efficient depreciation schedules for fixed assets no matter the length of use. Depending on the method of the company, I can use different depreciation methods in the schedules or even use all three and compare to choose the best option. I can manage inventory items in a spreadsheet or create trial balances, for a relatively small

discuss the scope of the standard (i.e., explain the types of transactions to which the standard applies) The authoritative guidance for asset impairment is to ensure that impairment is recorded and dealt with as depreciation. The scope of the standard is writing off of assets and depreciation. According to the guidance of 360-10-35, it address how long-lived assets that are intended to be held and used in an entity’s business shall be reviewed for impairment. The impairment loss can only be recognized

CHAPTER 12 Statement of Cash Flows Study Objectives 1. Indicate the usefulness of the statement of cash flows. 2. Distinguish among operating, investing, and financing activities. 3. Explain the impact of the product life cycle on a company’s cash flows. 4. Prepare a statement of cash flows using the indirect method. 5. Use the statement of cash flows to evaluate a company. *6. Prepare a statement of cash flows using the direct method. Summary of Questions by Study Objectives

company's accounting department reports the following costs of producing the 4,000 units of the part that are needed every year. Per Unit Direct Materials $2.80 Direct Labor $6.30 Variable Overhead $8.50 Supervisor's Salary $2.60 Depreciation of Special Equipment $6.80 Allocated General Overhead $6.10 1. An outside supplier has offered to make the part and sell it to the company for $32.30 each. If this offer is

The land value of the property, for purposes of depreciation, was estimated at $2,100,000 and the depreciation period (cost recovery period) for the building would be 27.5 years. Nearby was the second property, a five-story, 75,000 square foot office building, 900 Stony Walk, with 67,000 square feet of rentable space. The building

accordance with ASC 360-10. Applicable Professional Pronouncements ASC 360-10, Property, Plant, and Equipment: Overall (ASC 360-10) ASC 360-10 provides guidance on accounting for property, plant, and equipment, and the related accumulated depreciation on those assets. This Subtopic also includes guidance on the impairment or disposal of long-lived assets. ASC 360-10 notes that long-lived tangible assets include land and land improvements, buildings, machinery and equipment, and furniture and

Chapter 1 CA1-1 (FASB and Standard-Setting) Presented below are four statements which you are to identify as true or false. If false, explain why the statement is false. 1. GAAP is the term used to indicate the whole body of FASB authoritative literature. 2. Any company claiming compliance with GAAP must comply with most standards and interpretations but does not have to follow the disclosure requirements. 3. The primary governmental body that has influence over the FASB is the SEC. 4. The FASB

Accrual vs. Cash Basis Accounting Alicia Wiley Grantham University Abstract In this paper I have defined accrual and cash basis accounting. Also, I have answered the following questions: Explain the difference between the accrual basis of accounting and the cash basis of accounting. What are the major reasons for using accrual accounting? What are the purpose of a journal and a ledger? Give an example of a contra-asset, and explain how it is recorded on the ledger as a transaction. Explain

MEMO TO: Scott Topping, Director of Finance DATE: March 31, 2009 SUBJECT: Blended Winglet Project In order to calculate Southwest’s expected future cash flows from the Blended Winglet project we made specific decisions in setting the cash flows. First, we assumed that the cost of a Winglet is $700,000 per pair. Additionally, we assumed initial costs of: installation downtown per plane of $5,000, an installation cost of $56,000, and a facility modification cost of $1,200. Since costs were

1. a) Adjusted basis is the original cost of the asset, plus improvements, less depreciation. Thus the asset has seen its basis reduced from what was originally $500 to $300. The mortgage owing further reduces the basis for this asset to $150. If X sends back stock worth $350, then A records a $200k profit on the deal. X will lose $200k on the deal, which is $50k on the asset and then another $200k in assumed debt. The loss that X takes on the deal is 83% attributable to A, an amount of $166. This