note - prospective adjust it after that o Cost – accum...

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Telef ó nica o Write-offs – to make adjustment to the balance sheet Current assets o Thing that going to turn into cash within one year Long-term assets o Land – keep it at the price you brought to make it close to the amount  it actually cost; = book value Capitalize o Cash - ; building + Expense o Cash - ; Exp +   NI reduce Depreciation o Straight line - evenly ; (Cost – salvage value) / # years o Accelerated – depreciation is high at the early year of life and keep  reducing 200% declining balance method 100/# year = straight line method straight line method x 200% = declining percent book value time each year with declining percent until it finish; last year just deduct the left amount of  asset value half year convention reduce half value every year o adjust value ; find it has longer life then initially assume
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Unformatted text preview: prospective adjust it after that o Cost – accum. depre. = book value Sell asset o If equally value: + cash ; - asset,+Accu.Depre. o If not : + cash ; - asset & gain/loss from asset sale in I/S o If trade in allowance asset with dealer; gain/loss = trade-in balance – book value; if += gain, -= loss see “9.4A - Aug 15” Liability o Self amortizing loan Pay equally amount of money for every period As period increase interest is pay little by little while paying back to more loan o Bond Coupon Par value Period o Contingent loss Only incur it when Probable Estimable + liability , + loss ; note: this is payable HW o P9.2A & P9.4A – long-term asset o P10.1A & 10.4A - Liability...
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