Fin AC- Bus Decsn 4e- Ch 09- EOC Sol

Fin AC- Bus Decsn 4e- Ch 09- EOC Sol - CHAPTER 9 Reporting...

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9-1 CHAPTER 9 Reporting and Analyzing Long-Lived Assets Study Objectives 1. Describe how the cost principle applies to plant assets. 2. Explain the concept of depreciation. 3. Compute periodic depreciation using the straight-line method, and contrast its expense pattern with those of other methods. 4. Describe the procedure for revising periodic depreciation. 5. Explain how to account for the disposal of plant assets. 6. Describe methods for evaluation the use of plant assets. 7. Identify the basic issues related to reporting intangible assets. 8. Indicate how long-lived assets are reported on the balance sheet. Summary of Questions by Study Objectives and Bloom’s Taxonomy Item SO BT Item SO BT Item SO BT Item SO BT Item SO BT Questions 1. 1 C 7. 2 K 12. 5 K 17. 7 C 22. 6 C 2. 1 K 8. 3 C 13. 5, 8 C 18. 7 C 23. 6 C 3. 1 K 9. 3 C 14. 7 C 19. 7 K 24. 6 C 4. 1 C 10. 4 C 15. 7 C 20. 7 C 25. 6 C 5. 1 C 11. 4 C 16. 7 C 21. 6 AP 26. 6 C 6. 2 C Brief Exercises 1. 1 AP 4. 4 AN 6. 5 AP 8. 6 AP 10. 9* AP 2. 1 AP 5. 5 AP 7. 7 AP 9. 8 AP 11. 9* AP 3. 3 AP Exercises 1. 1 C 5. 5 AP 8. 6 AP 11. 7 A 14. 2, 7 C 2. 1 AP 6. 5 AP 9. 6 AP 12. 15. 9* AP 3. 3 AP 7. 10. 6 AP 13. 7 7 A C 16. 9* AP 4. 3, 4 AN 1, 6, 7C Problems: Set A 1. 1 C 3. 5 AP 5. 7 AP 7. 3, 9* A 8. 3, 9* AP 2. 5, 8 AP 4. 7, 8 AP 6. 6 AN Problems: Set B 1. 1 C 3. 5 AP 5. 7 AP 7. 3, 9* A 8. 3, 9* AP 2. 5, 8 AP 4. 7, 8 AP 6. 6 AN
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9-2 ASSIGNMENT CLASSIFICATION TABLE Problem Number Description Difficulty Level Time Allotted (min.) 1A Determine acquisition costs of land and building. Simple 20–30 2A Journalize equipment transactions related to purchase, sale, retirement, and depreciation. Moderate 40–50 3A Journalize entries for disposal of plant assets. Simple 20–30 4A Prepare entries to record transactions related to acquisi- tion and amortization of intangibles; prepare the intangible assets section and notes. Moderate 30–40 5A Prepare entries to correct errors in recording and amortizing intangible assets. Moderate 15–20 6A Calculate and comment on return on assets, profit margin, and asset turnover ratio. Moderate 15–20 *7A Compute depreciation under different methods. Simple 30–40 *8A Compute depreciation under different methods. Moderate 15–20 1B Determine acquisition costs of land and building. Simple 20–30 2B Journalize equipment transactions related to purchase, sale, retirement, and depreciation. Moderate 40–50 3B Journalize entries for disposal of plant assets. Simple 20–30 4B Prepare entries to record transactions related to acquisi- tion and amortization of intangibles; prepare the intangible assets section and notes. Moderate 30–40 5B Prepare entries to correct errors in recording and amortizing intangible assets. Moderate 15–20 6B Calculate and comment on return on assets, profit margin, and asset turnover ratio. Moderate 15–20 *7B Compute depreciation under different methods. Simple 30–40 *8B Compute depreciation under different methods. Moderate 30–40
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9-3 ANSWERS TO QUESTIONS 1. For plant assets, the cost principle states that plant assets are recorded at cost, which consists of all expenditures necessary to acquire the asset and make it ready for its intended use.
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Fin AC- Bus Decsn 4e- Ch 09- EOC Sol - CHAPTER 9 Reporting...

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