Intermediate Accounting, 10 Ed
10th Edition
ISBN: 9781260310177
Author: Mark W. Nelson, Wayne B. Thomas J. David Spiceland
Publisher: McGraw-Hill Education
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Question
Chapter 11, Problem 11.13E
1)
To determine
Introduction: The frequent usage of assets for business reasons reduces their value. Throughout the asset's useful life, businesses
The equipment book value.
2)
To determine
Introduction: The expense of using a tangible item and the benefit received throughout its useful life are linked through depreciation. The amount charged for depreciation on the
The amount of equipment reported in the balance sheet
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uipment, less accumulated depreciation of $88,600 at December
31, 2020, and $55,375 at December 31, 2019.
Jired:
there have not been any purchases, sales, or other transactions affecting this equipment account since the equipment was first
cquired, what is the amount of depreciation expense for 2020?
omplete this question by entering your answers in the tabs below.
ssume the same facts as in part a, and assume that the estimated useful life of the equipment is four years and the estimated
alvage value is $23,900. Determine:
1. What the original cost of the equipment was.
2. What depreciation method is apparently being used.
3. When the equipment was acquired.
ssume that the equipment is sold on December 31, 2020, for $56,000. Prepare the horizontal model and record the journal entry
ir the sale of the equipment. Indicate the financial statement effect.
equired A
Required B1
December 31, 2020
$ 68,200
Required B2 Required B3 Required C1
sume that the equipment is sold on December 31,…
Use the information below to answer the questions that follow. The business's year-end is December 31.
Cost of equipment = 120000
Useful life in years = 10
Residual value = 0
Date purchased = February 1, 2021
Date of disposal = October 31, 2023
Cash received on disposal = 85000
What is the accumulated depreciation on the date of the disposal?
What is the book value of the equipment on the date of the disposal?
What is the amount of the gain or loss on the disposal?
The following information is available about Company DEF's depreciable assets on January 1, 2019
(numbers are in € millions):
Original Cost
€ 50,000
Depreciable Base
€ 47,500
Accumulated Depreciation (1/1/2019)
€ 28,500
Depreciable Life
10 years
An analyst believes that the above described estimates do not reflect the underlying economic
depreciation of Company DEF's assets. As a result, the analyst wants to adjust Company DEF's
financial statements based on his own estimates. While the analyst assumes that the residual value
assumption of Company DEF is correct, the analyst adjusts the depreciable life of the asset. In
adjusting the financial statements of Company DEF, the analyst decreases the 1/1/2019
accumulated depreciation by €10687.5.
What is the depreciable life (in years) that the analyst uses in adjusting Company DEF's financial
statements?
Chapter 11 Solutions
Intermediate Accounting, 10 Ed
Ch. 11 - Prob. 11.1QCh. 11 - Depreciation is a process of cost allocation, not...Ch. 11 - Identify and define the three characteristics of...Ch. 11 - Discuss the factors that influence the estimation...Ch. 11 - What is meant by depreciable base? How is it...Ch. 11 - Prob. 11.6QCh. 11 - Prob. 11.7QCh. 11 - Why are time-based depreciation methods used more...Ch. 11 - Prob. 11.9QCh. 11 - Prob. 11.10Q
Ch. 11 - Briefly explain the differences and similarities...Ch. 11 - Prob. 11.12QCh. 11 - Prob. 11.13QCh. 11 - What are some of the simplifying conventions a...Ch. 11 - Explain the accounting treatment required when a...Ch. 11 - Explain the accounting treatment and disclosures...Ch. 11 - Explain the steps required to correct an error in...Ch. 11 - Prob. 11.18QCh. 11 - Prob. 11.19QCh. 11 - Prob. 11.20QCh. 11 - Prob. 11.21QCh. 11 - Briefly explain the differences between U.S. GAAP...Ch. 11 - Under U.S. GAAP, litigation costs to successfully...Ch. 11 - Cost allocation At the beginning of its fiscal...Ch. 11 - Prob. 11.4BECh. 11 - Prob. 11.5BECh. 11 - Prob. 11.8BECh. 11 - Prob. 11.10BECh. 11 - Prob. 11.11BECh. 11 - Prob. 11.12BECh. 11 - Prob. 11.13BECh. 11 - Impairment; property, plant, and equipment LO118...Ch. 11 - Prob. 11.18BECh. 11 - IFRS; impairment; property, plant, and equipment ...Ch. 11 - Prob. 11.20BECh. 11 - Prob. 11.21BECh. 11 - IFRS; impairment; goodwill LO1110 IFRS Refer to...Ch. 11 - Subsequent expenditures LO119 Demmert...Ch. 11 - Prob. 11.1ECh. 11 - Prob. 11.2ECh. 11 - Prob. 11.3ECh. 11 - Prob. 11.4ECh. 11 - Depreciation methods; solving for unknowns LO112...Ch. 11 - Prob. 11.10ECh. 11 - Prob. 11.12ECh. 11 - Prob. 11.13ECh. 11 - Prob. 11.15ECh. 11 - Prob. 11.16ECh. 11 - Prob. 11.26ECh. 11 - Impairment; property, plant, and equipment LO118...Ch. 11 - IFRS; impairment; property, plant, and equipment ...Ch. 11 - Prob. 11.30ECh. 11 - Prob. 11.31ECh. 11 - Prob. 11.32ECh. 11 - Prob. 11.33ECh. 11 - FASB codification research LO118 The FASB...Ch. 11 - Prob. 11.35ECh. 11 - Subsequent expenditures LO119 Belltone Company...Ch. 11 - Concept s; terminology LO111 through LO116, LO118...Ch. 11 - Depreciation methods; change in methods LO112,...Ch. 11 - Prob. 11.6PCh. 11 - Prob. 11.7PCh. 11 - Prob. 11.10PCh. 11 - Prob. 11.12PCh. 11 - Prob. 11.14PCh. 11 - Analysis Case 111 Depreciation, depletion, and...Ch. 11 - Communication Case 112 Depreciation LO111 At a...Ch. 11 - Judgment Case 113 Straight-line method; composite...Ch. 11 - Prob. 11.4DMPCh. 11 - Prob. 11.8DMPCh. 11 - Research Case 119 FASB codification; locate and...Ch. 11 - Prob. 11.11DMPCh. 11 - Real World Case 1115 Depreciation and depletion...Ch. 11 - Prob. 11.16DMPCh. 11 - Target Case LO112, LO118, LO119 Target...
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