ch11 - DEPRECIATION IMPAIRMENTS DEPRECIATION AND DEPLETION...

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Unformatted text preview: CHAPTER 11 11 DEPRECIATION, IMPAIRMENTS, DEPRECIATION, AND DEPLETION AND Intermediate Accounting 13th Edition Kieso, Weygandt, and Warfield Chapter 11-1 Learning Objectives 1. 2. 3. 4. 5. 6. 7. Explain theconce of de ciation. pt pre Ide ntify thefactors involve in thede ciation proce d pre ss. C pareactivity, straight-line and de asing-chargem thods of de ciation. om , cre e pre Explain spe de ciation m thods. cial pre e Explain theaccounting issue re d to asse im s late t pairm nt. e Explain theaccounting proce s for de tion of natural re dure ple source s. Explain how to re and analyzeprope plant, e port rty, quipm nt, and natural e Explain re source s. re Chapter 11-2 Depreciation, Impairments, and Depletion Depreciation Factors involved Methods of Methods depreciation depreciation Special methods Special issues Impairments Recognizing Recognizing impairments impairments Measuring Measuring Impairments Impairments Restoration of Restoration loss loss Assets to be Assets disposed of disposed Depletion Establishing a Establishing base base Write-off of Write-off resource cost resource Estimating Estimating reserves reserves Liquidating Liquidating dividends dividends Continuing Continuing controversy controversy Presentation and Presentation Analysis Analysis Presentation Analysis Chapter 11-3 Depreciation - Method of Cost Allocation De ciation is theaccounting proce of allocating thecost of t angible pre ss asse to e nsein a syste atic and rational m r to thosepe ts xpe m anne riods e cte to be fit fromtheuseof theasse xpe d ne t. Allocating costs of long-te asse rm ts: Fixe asse = De ciation e nse d ts pre xpe I ntangible = Am s ortization e nse xpe Natural re source = De tion e nse s ple xpe Chapter 11-4 LO 1 Explain theconce of de ciation. pt pre Depreciation - Method of Cost Allocation Factors I nvolve in theDe ciation Proce d pre ss Thre basic que e stions: (1) What de ciablebaseis to beuse pre d? (2) What is theasse use life t’s ful ? (3) What m thod of cost allocation is be e st? Chapter 11-5 LO 2 I de ntify thefactors involve in thede ciation proce d pre ss. Depreciation - Method of Cost Allocation Factors I nvolve in theDe ciation Proce d pre ss De ciableBase pre I llustration 11-1 Chapter 11-6 LO 2 I de ntify thefactors involve in thede ciation proce d pre ss. Depreciation - Method of Cost Allocation Factors I nvolve in theDe ciation Proce d pre ss Estim ation of S rviceLife e s S rvicelifeof an asse ofte diffe fromits physical life e t n rs . C panie re asse for two re om s tire ts asons: physical factors (such as casualty or e xpiration of physical life and ) e conom factors (obsole nce ic sce ). Chapter 11-7 LO 2 I de ntify thefactors involve in thede ciation proce d pre ss. Depreciation - Method of Cost Allocation Me thods of De ciation pre Theprofe ssion re quire them thod e ploye be“syste atic and s e m d m rational.” Exam s include ple : (1) (2) (3) (4) (5) (6) Chapter 11-8 Activity m thod (units of useor production). e S traight-linem thod. e S -of-the ars’-digits. um -ye De clining-balancem thod. e Group and com positem thods. e Hybrid or com bination m thods. e LO 3 C pareactivity, straight-line and de asing-chargem thods of , cre e LO om de ciation. pre de Acce rate m thods le d e S cial m thods pe e Depreciation - Method of Cost Allocation Activity Me thod I llustration 11-2 S tanle C y oal Mine Facts s Mine I llustration: I f S tanle use thecranefor 4,000 hours thefirst ye the ys ar, de ciation chargeis: pre I llustration 11-3 Chapter 11-9 LO 3 C pareactivity, straight-line and de asing-chargem thods of , cre e LO om de ciation. pre de Depreciation - Method of Cost Allocation S traight-LineMe thod I llustration 11-2 S tanle C y oal Mine Facts s Mine I llustration: S tanle com s de ciation as follows: y pute pre I llustration 11-4 Chapter 11-10 LO 3 C pareactivity, straight-line and de asing-chargem thods of , cre e LO om de ciation. pre de Depreciation - Method of Cost Allocation De asing-C cre hargeMe thods I llustration 11-2 S tanle C y oal Mine Facts s Mine S -of-the ars’-Digits. Each fraction use thesumof theye as a um -Ye s ars de inator (5 + 4 + 3 + 2 + 1 = 15). Thenum rator is thenum r of ye of nom e be ars e ate lifere aining as of thebe stim d m ginning of theye ar. Chapter 11-11 LO 3 C pareactivity, straight-line and de asing-chargem thods of , cre e LO om de ciation. pre de Depreciation - Method of Cost Allocation S -of-the ars’-Digits um -Ye I llustration 11-6 Chapter 11-12 LO 3 C pareactivity, straight-line and de asing-chargem thods of , cre e LO om de ciation. pre de Depreciation - Method of Cost Allocation De asing-C cre hargeMe thods I llustration 11-2 S tanle C y oal Mine Facts s Mine De clining-BalanceMe thod. Utilize a de ciation rate(pe ntage that is som m s pre rce ) e ultipleof thestraight-line m thod. e Doe not de s duct thesalvagevaluein com puting thede ciation base pre . LO 3 C pareactivity, straight-line and de asing-chargem thods of , cre e LO om de ciation. pre de Chapter 11-13 Depreciation - Method of Cost Allocation De clining-BalanceMe thod I llustration 11-7 Chapter 11-14 LO 3 C pareactivity, straight-line and de asing-chargem thods of , cre e LO om de ciation. pre de Depreciation - Method of Cost Allocation E11-5 (De ciation C putations—Four Me pre om thods): KCC orporation purchase a ne d w m achinefor its asse bly proce on August 1, 2010. Thecost of this m m ss achinewas $150,000. Thecom pany e ate that them stim d achinewould havea salvagevalueof $24,000 at thee of its se nd rvicelife I ts lifeis e ate . stim d at 5 ye and its working hours aree ate at 21,000 hours. Ye nd is De m r 31. ars stim d ar-e ce be I nstructions: Com putethede ciation e nseunde thefollowing m thods. pre xpe r e (a) S traight-linede ciation. pre (b) Activity m thod e (c) S -of-the ars’-digits. um -ye (d) Double clining balance -de . Chapter 11-15 LO 3 C pareactivity, straight-line and de asing-chargem thods of , cre e LO om de ciation. pre de Depreciation - Method of Cost Allocation S traight-lineMe thod Year 2010 2 011 2 012 2 013 2 014 2 015 Depreciable Base $ 126, 000 126, 000 126, 000 126, 000 126, 000 126, 000 / / / / / / Years 5 5 5 5 5 5 = = = = = = Annual Expense $ 25, 200 25, 200 25, 200 25, 200 25, 200 25, 200 x 7/ 12 = x Part ial Year 5/ 12 = $ Current Year Expense 10, 500 2 5, 200 2 5, 200 2 5, 200 2 5, 200 14, 700 $ 1 26, 000 Accum. Deprec. $ 1 0, 500 3 5, 700 6 0, 900 8 6, 100 1 11, 300 1 26, 000 J our nal ent r y: 2010 Depr eciat ion expense Accumult at ed depr eciat ion 10, 500 10, 500 Chapter 11-16 LO 3 C pareactivity, straight-line and de asing-chargem thods of , cre e LO om de ciation. pre de Depreciation - Method of Cost Allocation Depreciation Activity Me thod (Given) Hours Used 800 x x x x x 800 J ournal ent ry: 2010 Depreciat ion expense Accumult at ed depreciat ion Chapter 11-17 (Assum 800 hours use in 2010) e d ($ 126, 000 / 21, 000 hours = $ 6 per hour) Rat e per Hours $6 = = = = = $ 4 , 800 Annual Expense $ 4, 800 Part ial Year Current Year Expense $ 4 , 800 Accum. Deprec. $ 4 , 800 Year 2010 2 011 2012 2013 2014 4, 800 4, 800 LO 3 Depreciation - Method of Cost Allocation S -of-the ars’-Digits Me um -Ye thod Year 2010 2 011 2 012 2 013 2 014 2 015 Depreciable Base $ 126, 000 126, 000 126, 000 126, 000 126, 000 126, 000 x x x x x x Years 5/ 15 = Annual Expense 42, 000 38, 500 30, 100 21, 700 13, 300 4, 900 x Part ial Year 5/ 12 $ 5/12 = .416667 7/12 = .583333 Current Year Expense 17, 500 3 8, 500 3 0, 100 2 1, 700 1 3, 300 4 , 900 $ 1 26, 000 Accum. Deprec. $ 1 7, 500 5 6, 000 8 6, 100 1 07, 800 1 21, 100 1 26, 000 4. 58/ 15 = 3. 58/ 15 = 2. 58/ 15 = 1. 58/ 15 = . 58/ 15 = J our nal ent r y: 2010 Chapter 11-18 Depr eciat ion expense Accumult at ed depr eciat ion 17, 500 17, 500 LO 3 LO Depreciation - Method of Cost Allocation Double clining BalanceMe -De thod Year 2010 2 011 2 012 2 013 2 014 Depreciable Base $ 150, 000 125, 000 75, 000 45, 000 27, 000 x x x x x Rat e per Year 40% 40% 40% 40% 40% = = = = = Annual Expense $ 60, 000 x 50, 000 30, 000 18, 000 10, 800 Plug Part ial Year 5/ 12 = $ Current Year Expense 25, 000 5 0, 000 3 0, 000 1 8, 000 3, 000 $ 1 26, 000 J our nal ent r y: 2010 Chapter 11-19 Depr eciat ion expense Accumult at ed depr eciat ion 25, 000 25, 000 LO 3 LO Depreciation - Method of Cost Allocation S cial De ciation Me pe pre thods Thechoiceof m thod de nds on thenatureof theasse involve e pe ts d: Group m thod use whe theasse aresim in natureand have e d n ts ilar approxim ly thesam use live ate e ful s. C positeapproach use whe theasse aredissim and havediffe nt om d n ts ilar re live s. C panie arealso fre to de lop tailor-m de ciation m thods, om s e ve ade pre e provide them thod re d e sults in theallocation of an asse cost in a t’s syste atic and rational m r (Hybrid or C bination Me m anne om thods). Chapter 11-20 LO 4 Explain spe de ciation m thods. cial pre e Depreciation - Method of Cost Allocation S cial De ciation I ssue pe pre s (1) How should com panie com s putede ciation for partial pe pre riods? Com panie norm com s ally putede ciation on thebasis of thene st pre are f ull m onth. (2) Doe de ciation providefor there s pre place e of asse m nt ts? Funds for there place e of theasse com fromthere nue m nt ts e ve s (3) How should com panie handlere s visions in de ciation rate pre s? Chapter 11-21 LO 4 Explain spe de ciation m thods. cial pre e Depreciation - Method of Cost Allocation C hange in De ciation Rate s pre Accounte for in thepe of changeand futurepe d riod riods (C hangein Estim ) ate Not handle re d trospe ly ctive Not conside d e re rrors or e xtraordinary ite s m Chapter 11-22 LO 4 Explain spe de ciation m thods. cial pre e Change in Estimate Example Arcadia HS purchase e d quipm nt for $510,000 which was e ate to e stim d Arcadia , havea use lifeof 10 ye with a salvagevalueof $10,000 at thee ful ars nd of that tim . De ciation has be n re e pre e corde for 7 ye on a straight-line d ars basis. I n 2010 (ye 8), it is de rm d that thetotal e ate lifeshould ar te ine stim d be15 ye with a salvagevalueof $5,000 at thee of that tim . ars nd e be Questions: What is thejournal e ntry to corre ct What de ciation? pre de C alculatethede ciation e nse pre xpe theprior ye ars’ N No for 2010. o Entry Re quire Re d Chapter 11-23 LO 4 Explain spe de ciation m thods. cial pre e Change in Estimate Example Equipm nt cost e Equipm S alvagevalue De ciablebase pre Use life(original) ful Annual de ciation pre Afte 7 ye r ars $510,000 $510,000 First, e stablish NBV at - 10,000 dateof changein e ate stim . date 500,000 10 ye ars ars $350,000 ye $ 50,000 x 7 ye = $350,000 BalanceS e (Dec. 31, 2009) he t (De Fixe Asse d ts: Equipm nt e Accum ulate de ciation d pre Ne book value(NBV) t Ne Chapter 11-24 $510,000 350,000 350,000 $160,000 LO 4 Explain spe de ciation m thods. cial pre e Change in Estimate Example Ne book value t Ne S alvagevalue(ne w) De ciablebase pre Use lifere aining ful m Annual de ciation pre Journal e for 2010 ntry De ciation e nse pre xpe Accum ulate de ciation d pre Chapter 11-25 Afte 7 ye r ars De ciation Expe pre nse De calculation for 2010. calculation $160,000 $160,000 5,000 5,000 155,000 8 ye ars $ 19,375 19,375 19,375 19,375 LO 4 Explain spe de ciation m thods. cial pre e Impairments Whe thecarrying am n ount of an asse is not re rable a com t cove , pany re cords a write re rre to as an im -off fe d pairm nt . e Eve le nts ading to an im pairm nt: e a. De asein them t valueof an asse cre arke t. b. C hangein them r in which an asse is use anne t d. c. Adve changein le factors or in thebusine clim . rse gal ss ate d. An accum ulation of costs in e ss of theam xce ount originally e cte to acquireor xpe d construct an asse t. e. A proje ction or fore that de onstrate continuing losse associate with an cast m s s d asse t. Chapter 11-26 LO 5 Explain theaccounting issue re d to asse im s late t pairm nt. e Impairments Me asuring I m pairm nts e 1. Re w e nts for possibleim vie ve pairm nt. e 2. I f there w indicate im vie s pairm nt, apply there rability te If the e cove st. sumof thee cte futurene cash flows fromthelong-live asse is le xpe d t d t ss t han thecarrying am ount of theasse an im t, pairm nt has occurre e d. 3. Assum an im ing pairm nt, theim e pairm nt loss is theam e ount by which the carrying am ount of theasse e e thefair valueof theasse Thefair t xce ds t. valueis them t valueor thepre nt valueof e cte futurene cash arke se xpe d t f lows. Chapter 11-27 LO 5 Explain theaccounting issue re d to asse im s late t pairm nt. e Impairments I llustration 11-16 Accounting for Im pairm nts e Chapter 11-28 LO 5 Explain theaccounting issue re d to asse im s late t pairm nt. e Impairments Impairments E11-16 (Im pairm nt): Pre nte be is inform e se d low ation re d to e late quipm nt owne by e d Pujols Com pany at De m r 31, 2010. Assum that Pujols will continueto usethis ce be e asse in thefuture As of De m r 31, 2010, thee t . ce be quipm nt has a re aining use life e m ful of 4 ye ars. Cost Accumulat ed depr eciat ion t o dat e Expect ed f ut ur e net cash f lows Fair value $ 9, 000, 000 1, 000, 000 7, 000, 000 4, 400, 000 I nstructions: (a) Pre parethejournal e (if any) to re theim ntry cord pairm nt of theasse at De m r 31, 2010. e t ce be (b) Pre parethejournal e to re de ciation e nsefor 2011. ntry cord pre xpe (c) Thefair valueof thee quipm nt at De m r 31, 2011, is $5,100,000. Pre e ce be parethejournal e ntry (if any) ne ssary to re this incre in fair value ce cord ase . Chapter 11-29 LO 5 Explain theaccounting issue re d to asse im s late t pairm nt. e Impairments (a). (a). Cost A ccumulat ed depr eciat ion Car r ying amount Fair value Loss on impair ment $ 9, 000, 000 1, 000, 000 8, 000, 000 4, 400, 000 $ 3, 600, 000 12/31/10 Loss on im pairm nt e Accum ulate de ciation d pre Chapter 11-30 3,600,000 3,600,000 LO 5 Explain theaccounting issue re d to asse im s late t pairm nt. e Impairments (b). (b). Net car r ying amount Usef ul lif e Depr eciat ion per year 12/31/11 $ 4, 400, 000 4 year s $ 1, 100, 000 De ciation e nse pre xpe Accum ulate de ciation d pre 1,100,000 1,100,000 (c). Re storation of any im pairm nt loss is not pe itte e rm d. Chapter 11-31 LO 5 Explain theaccounting issue re d to asse im s late t pairm nt. e Depletion Natural re source , ofte calle wasting asse includepe um s n d ts, trole , m rals, and tim r. ine be The havetwo m fe y ain ature s: 1. com tere oval (consum ple m ption) of theasse and t, 2. re place e of theasse only by an act of nature m nt t . De tion is theproce of allocating thecost of natural re ple ss source s. Chapter 11-32 LO 6 Explain theaccounting proce s for de tion of natural re dure ple source s. Depletion Establishing a De tion Base ple C putation of thede tion baseinvolve four factors: om ple s (1) Acquisition cost of thede posit, (2) Exploration costs, (3) De lopm nt costs, and ve e (4) Re storation costs. Chapter 11-33 LO 6 Explain theaccounting proce s for de tion of natural re dure ple source s. Depletion Write of Re -off sourceC ost Norm ally, com panie com s putede tion on a units-of-production m thod ple e (an activity approach). Thus, de tion is a function of thenum r of ple be units e xtracte during thepe d riod. C alculation: Total cost – S alvagevalue Total e ate units available stim d Units e xtracte x C pe unit d ost r Chapter 11-34 = De tion cost pe unit ple r = De tion ple LO 6 Explain theaccounting proce s for de tion of natural re dure ple source s. Depletion E11-19 (De tion Com ple putations—Tim r): He be rnande Tim r C pany owns 9,000 z be om acre of tim rland purchase in 1999 at a cost of $1,400 pe acre At thetim of s be d r . e purchasetheland without thetim r was value at $400 pe acre In 2000, He be d r . rnande z built firelane and roads, with a lifeof 30 ye at a cost of $87,000. Eve ye s ars, ry ar He rnande sprays to pre nt dise at a cost of $3,000 pe ye and spe $7,000 to z ve ase r ar nds m aintain thefirelane and roads. During 2001, He s rnande se ctive logge and sold z le ly d 700,000 board fe t of tim r, of thee ate 3,000,000 board fe t. In 2002, He e be stim d e rnande z plante ne se dlings to re dwe placethetre s cut at a cost of $100,000. e I nstructions: De rm thede ciation e nseand thecost of tim r sold re d to de tion for te ine pre xpe be late ple 2001. Chapter 11-35 LO 6 Explain theaccounting proce s for de tion of natural re dure ple source s. Depletion E11-19 (De tion Com ple putations—Tim r) be Depr eciat ion Expense: Fir e lanes and r oads U sef ul lif e Depr eciat ion ex pense per year $ 87,000 30 $ 2,900 Chapter 11-36 LO 6 Explain theaccounting proce s for de tion of natural re dure ple source s. Depletion E11-19 (De tion Com ple putations—Tim r) be Deplet ion: Cost of t imber land per acr e Cost of land per acr e Cost of t imber only per acr e T ot al acr es Value of t imber Est imat ed t ot al boar d f eet Cost per boar d f oot Boar d f eet of t imber sold Cost of t imber sold r elat ed t o deplet ion Chapter 11-37 $ $ $ $ $ 1,400 (400) 1,000 9,000 9,000,000 3,000,000 3.00 700,000 2,100,000 LO 6 Explain theaccounting proce s for de tion of natural re dure ple source s. Depletion Estim ating Re rableRe rve cove se s S eas accounting for change in e ate am s stim s. Re thede tion rateon a prospe vise ple ctivebasis. Divide there aining cost by thene e ateof there rable s m w stim cove re rve se s. Chapter 11-38 LO 6 Explain theaccounting proce s for de tion of natural re dure ple source s. Depletion Liquidating Divide - Dividends greater than theamount of nds accum ulate ne incom . dt e I llustration: C allahan Mining had a re taine e d arnings balanceof $1,650,000 and paid-in capital in e ss of par of $5,435,493. C xce allahan’s board de d a clare divide of $3 a shareon the1,000,000 share outstanding. I t re nd s cords the $3,000,000 cash divide as follows. nd Re taine Earnings d Paid-in C apital in Exce of Par ss C ash Chapter 11-39 1,650,000 1,350,000 3,000,000 LO 6 Explain theaccounting proce s for de tion of natural re dure ple source s. Depletion C ontinuing C ontrove rsy Oil and Gas I ndustry: Full cost conce pt S ssful e ucce fforts conce pt Chapter 11-40 LO 6 Explain theaccounting proce s for de tion of natural re dure ple source s. Presentation and Analysis Pre ntation of Prope Plant, Equipm nt, and Natural se rty, e Re source s De ciating asse useAccum pre ts, ulate De ciation. d pre De ting asse m includeuseof Accum ple ts ay ulate De tion account, or the d ple dire re ct duction of asse t. Basis of valuation (cost) Ple s, lie and othe com itm nts dge ns, r me Disclosure s De ciation e nsefor thepe pre xpe riod. Balance of m classe of de ciableasse s ajor s pre ts. Accum ulate de ciation. d pre A de scription of thede ciation m thods use pre e d. Chapter 11-41 LO 7 Explain how to re and analyzeprope plant, e port rty, quipm nt, e LO and natural re source s. and Presentation and Analysis Presentation Theassets turnover is a m asureof a firm ability to ge ratesale froma e ’s ne s The particular inve e in asse stm nt ts. I llustration 11-20 Chapter 11-42 S olution on note page s note LO 7 Explain how to re and analyzeprope plant, e port rty, quipm nt, e LO and natural re source s. and Presentation and Analysis Theprofit margin on sale is a m asureof theability to ge rateope s e ne rating The incom froma particular le l of sale e ve s. incom I llustration 11-21 Chapter 11-43 S olution on note page s note LO 7 Explain how to re and analyzeprope plant, e port rty, quipm nt, e LO and natural re source s. and Presentation and Analysis Rate of Return on Assets m asure a firm succe in using asse to e s ’s ss ts ge ratee ne arnings. ge I llustration 11-22 Chapter 11-44 S olution on note page s note LO 7 Explain how to re and analyzeprope plant, e port rty, quipm nt, e LO and natural re source s. and Presentation and Analysis Presentation Theanalyst obtains furthe insight into thebe r havior of ROA by The disaggregating it into com nts of profit m pone argin on sale and asse s t disaggregating turnove as follows: r t urnove Rateof Re turn on Asse ts Ne I ncom t e = Ave Total Asse rage ts Ne S s t ale Profit Margin on Ss ale Ne I ncom t e x Ave Total Asse rage ts Asse Turnove t r Ne S s t ale = x Chapter 11-45 LO 7 Explain how to re and analyzeprope plant, e port rty, quipm nt, e LO and natural re source s. and Presentation and Analysis Presentation Theanalyst obtains furthe insight into thebe r havior of ROA by The disaggregating it into com nts of profit m pone argin on sale and asse s t disaggregating turnove as follows: r t urnove Rateof Re turn on Asse ts $64.2 = ($811.8 + 665.3) / 2 $420.1 Profit Margin on Ss ale $64.2 x ($811.8 + 665.3) / 2 Asse Turnove t r $420.1 = x 8.7% Chapter 11-46 = 15.28% x .569 LO 7 Explain how to re and analyzeprope plant, e port rty, quipm nt, e LO and natural re source s. and Unde both iGAAP and U.S GAAP, inte st costs incurre during construction m be r . re d ust capitalize d. iGAAP, likeU.S GAAP, capitalize all dire costs in se . s ct lf-constructe asse d ts. Theaccounting for e xchange of nonm tary asse has re ntly conve d be e s one ts ce rge twe n iGAAP and U.S GAAP. . iGAAP pe its thesam de ciation m thods (straight-line acce rate units-ofrm e pre e , le d, production) as U.S GAAP. . Chapter 11-47 As discusse in theChapte 4 C rge C r, iGAAP pe its asse re d r onve nce orne rm t valuations (which arenot pe itte in U.S GAAP). C que rm d . onse ntly, com panie that usethe s re valuation fram work m follow re e ust valuation de ciation proce s. pre dure iGAAP also use a fair valuete to m asuretheim s st e pairm nt loss. Howe r, iGAAP doe e ve s not usethefirst-stagere rability te use unde U.S GAAP—com cove st d r . paring the undiscounte cash flows to thecarrying am d ount. Thus, theiGAAP te is m strict than st ore U.S GAAP. . Chapter 11-48 Modifie Acce rate C Re ry S m d le d ost cove yste MAC diffe fromGAAP in thre re cts: RS rs e spe 1. a m andate tax life which is ge rally shorte than thee d , ne r conom life ic ; 2. cost re ry on an acce rate basis; and cove le d 3. an assigne salvagevalueof ze d ro. Chapter 11-49 LO 8 De scribeincom tax m thods of de ciation. e e pre Modifie Acce rate C Re ry S m d le d ost cove yste Tax Live (Re ry Pe s cove riods) Illustration 11A-1 Chapter 11-50 LO 8 De scribeincom tax m thods of de ciation. e e pre Modifie Acce rate C Re ry S m d le d ost cove yste Tax De ciation Me pre thods Illustration 11A-2 Chapter 11-51 LO 8 De scribeincom tax m thods of de ciation. e e pre Modifie Acce rate C Re ry S m d le d ost cove yste I llustration: C pute and pe om r riphe e ral quipm nt purchase by De Rode e d nise C pany on January 1, 2009. om Chapter 11-52 LO 8 De scribeincom tax m thods of de ciation. e e pre Modifie Acce rate C Re ry S m d le d ost cove yste I llustration: Illustration 11A-3 Chapter 11-53 LO 8 De scribeincom tax m thods of de ciation. e e pre Modifie Acce rate C Re ry S m d le d ost cove yste Illustration 11A-4 I llustration: Using therate fromthe s MAC de ciation ratesche for RS pre dule a 5-ye class of prope Rode ar rty, com s de ciation as follows pute pre Illustration 11A-5 Chapter 11-54 LO 8 De scribeincom tax m thods of de ciation. e e pre Modifie Acce rate C Re ry S m d le d ost cove yste Additional I ssue s Optional straight-linem thod e Tax ve book de ciation rsus pre Chapter 11-55 LO 8 De scribeincom tax m thods of de ciation. e e pre ...
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