Question

What should companies consider before choosing a method of expensing long-lived-assets cost? What are some benefits...

What should companies consider before choosing a method of expensing long-lived-assets cost?

What are some benefits and risk of various depreciation methods on a company's net income?

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
The comparison of long-lived assets on the balance sheets of various companies is often made more...
The comparison of long-lived assets on the balance sheets of various companies is often made more difficult because different companies: Select one: a. Use different depreciation methods. b. Choose different estimated asset lives. c. Have made asset purchases long ago vs. more recently. d. All of the above e. None of the above
discussion question you will explain how to account for long-lived assets. What are the various categories...
discussion question you will explain how to account for long-lived assets. What are the various categories of long-lived assets? What should be included in the cost of a long-lived asset for accounting purposes? How do accountants decide when these costs should be expensed rather than capitalized?
CC9-1 Accounting for the Use and Disposal of Long-Lived Assets [LO 9-3, LO 9-5] [The following...
CC9-1 Accounting for the Use and Disposal of Long-Lived Assets [LO 9-3, LO 9-5] [The following information applies to the questions displayed below.] Nicole’s Getaway Spa (NGS) purchased a hydrotherapy tub system to add to the wellness programs at NGS. The machine was purchased at the beginning of the year at a cost of $25,000. The estimated useful life was five years and the residual value was $1,000. Assume that the estimated productive life of the machine is 10,000 hours....
The fact that generally accepted accounting principles allow companies flexibility in choosing between certain allocation methods...
The fact that generally accepted accounting principles allow companies flexibility in choosing between certain allocation methods can make it difficult for a financial analyst to compare periodic performance from firm to firm. Suppose you were a financial analyst trying to compare the performance of two companies. Company A uses the double-declining-balance depreciation method. Company B uses the straight-line method. You have the following information taken from the 12/31/2021 year-end financial statements for Company B: Income Statement Depreciation expense $ 5,000...
1 what is the ultimate purpose of long-term assets? 2 How should the cost of these...
1 what is the ultimate purpose of long-term assets? 2 How should the cost of these assets be allocated over the asset's useful life? 3 Why is depreciation not synonymous with valuation?
8. If a long-lived asset was sold before the end of its estimated useful life, the...
8. If a long-lived asset was sold before the end of its estimated useful life, the gain or loss on disposal is found by subtracting a. the book value from the cash received. b. accumulated depreciation from the original cost of the asset. c. the original cost of the asset from the asset’s book value. d. the asset’s book value from the original cost of the asset. 9. A truck costing $40,000 was purchased on January 1, 2006. The straight-line...
1)Consider the following DATA for Mighty Dogs Inc,: Total assets=$33,000, Long-term assets = $21,000, Long Term...
1)Consider the following DATA for Mighty Dogs Inc,: Total assets=$33,000, Long-term assets = $21,000, Long Term debt=$19,000, and short term debt=$8000. What is the amount of current assets? (units in dollars) 2)Given the following information for a firm, calaculate its depreciation expense: sales=$52,000 cost of goods sold=$27,000 interest expense= $2,000 net income= $8,000 tax rate= 20% 3)The NPV of a 4-year project is $7000. What is its equivalent annuity cost? Assume a discount rate of 12%. (express units of dollars)
1.assets classified as property plant and equipment are reported at? A. each asset's estimated market value...
1.assets classified as property plant and equipment are reported at? A. each asset's estimated market value at the balance sheet date less depreciation B. each asset's estimated market value at the balance sheet date C. the estimated salvage value at the balance sheet date D. each asset's original cost less depreciation since acquisition 2. depreciation is A. an effort to achieve proper matching of the cost of operating assets with related revenues B. an accumulation of funds to replace the...
Rockwell Corporation uses a periodic inventory system and has used the FIFO cost method since inception...
Rockwell Corporation uses a periodic inventory system and has used the FIFO cost method since inception of the company in 1979. In 2021, the company decided to switch to the average cost method. Data for 2021 are as follows: Beginning inventory, FIFO (6,500 units @ $25) $ 162,500 Purchases: 6,500 units @ $31 $ 201,500 6,500 units @ $35 227,500 429,000 Cost of goods available for sale $ 591,500 Sales for 2021 (9,000 units @ $78) $ 702,000 Additional Information:...
Fama Corp sold some plant assets during 2020 for $265,000. The original cost to Fama of...
Fama Corp sold some plant assets during 2020 for $265,000. The original cost to Fama of these assets was $1,830,000. The accumulated depreciation on these particular assets was $1,350,000 at December 31, 2019, and was $1,500,000 at the time of the sale in 2020. Fama uses the indirect method for its statement of cash flows. In reconciling net income to cash flows from operations, what is the net effect (i.e., addition or subtraction) stemming from these plant assets for the...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT