Intel inside solutions

Intel inside solutions - Intel Inside(2 Intel's addition...

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Unformatted text preview: Intel Inside (2) Intel's addition to PP&E INTEL INSIDE =$4,501 (mil) PP&E 4 501 4,501 Cash 4,501 Intel Inside (1) Average age of PP&E Ave. Accumulated Depreciation Depreciation Expense E (7,461+5775)/2 2,192= Intel Inside (3) 3.0 yrs Reconstructing I t l' R t ti Intel's Loss on PP&E T-Account approach Page 1 Intel Inside (3) T-Account Approach Intel Inside (3) T-Account Approach Historical Cost of PPE Disposed 1. Recreate PPE T-account 2. Beginning Bal. 3. Ending Bal. 4. Purchases 5. "Plug" = Disposals Property, Plant, Equip Beginning 14,262 Purchases 4,501 X "Pl " "Plug" Historical Cost of PPE Sold Accum Deprn of PPE Sold Net Book Value of PPE Sold Cash Received on Disposal Loss on Disposal 636 (506) 130 0 130 Ending 18,127 X = 636 = Cost of PP&E disposed Intel Inside (3) T-Account Approach Intel Inside (3) T-Account Approach Journal entry for the PP&E disposal: Historical Cost of Accum Depr'n Disposed 1. Recreate Acum Deprn T-account 2. Beginning Bal. 3. Ending Bal. 4. Depr'n Expense 5. "Plug" = Disposals Beginning Depr'n Exp "Plug" Ending Accumulated Depreciation 5,775 2,192 Y 7,461 Acc. Dep Loss PP&E 506 130 636 Y = 506 = AD related to PP&E disposed Page 2 ...
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This note was uploaded on 06/23/2008 for the course ACCT 410x taught by Professor Bonner during the Spring '06 term at USC.

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