homework oct 23

# homework oct 23 - AP8-3 AP8-4 AP8-5 AP8-6 AP8-7 P8-11 AP8-3...

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AP8-3, AP8-4, AP8-5, AP8-6, AP8-7, P8-11. AP8-3 1. Compute the cost of each machine A B C Purchase price 10,800 32,500 21,700 Installation costs 800 1,100 1,00 Renovation costs prior to use 600 1400 1600 Total Cost (add together) 12,200 1400 1600 2. Journal entries! Based on information given in book Depreciation expense for each: A: 2,800 B: 7,000 C: 9,760 (using numbers from page 450… reference) Depreciation Expense (All depreciation expenses added together) 19560 Accumulated depreciation A 2800 Accumulated Depreciation B 7000 Accumulated depreciation C 9760 AP8-4 1. Assuming that Gap, Inc did not have any asset impairment write offs and did not sell any property, plant, and equipment in the current year, what was the amount of depreciation expense recorded in the current year? 3197 + 3246 = 7650 (the amount of depreciation and amortization combined) 2. Assume that the Gap, Inc failed to record depreciation in the current year. Indicate the effect of the error (overstated or understated) on the following ratios a. Earnings per share Net income would be overstated

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homework oct 23 - AP8-3 AP8-4 AP8-5 AP8-6 AP8-7 P8-11 AP8-3...

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