320CheckFigures_10 - CHAPTER 10 Acquisition and Disposition...

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CHAPTER 10 Acquisition and Disposition of Property, Plant, and Equipment CHECK FIGURES TO SELECTED PROBLEMS EXERCISE 10-8 The only option available for this problem was an algorithmic one. That means that there are several versions of the question and your friends might not have the same numbers as you do. Make sure you work the problem that is yours or the answers will be wrong. Assume a capitalization period of March 1 to December 31. This is not clear in the problem, but that is what they do in the solutions. Include the land in the March 1 amount when calculating AAE When finding average accumulated expenditures, always use 12 as the denominator in the fraction. The numerator should be the number of months during the capitalization period that the expenditure was outstanding. For example, a capitalization period from March 1 to June 30 would be a 4 month period. If an expenditure was made on March 31, the fraction would 3/12 because that expenditure was outstanding for 3 of the 4 months of the capitalization period. EXERCISE 10-9
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This note was uploaded on 11/22/2010 for the course ACCT 320 taught by Professor Alee during the Spring '10 term at Kansas State University.

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320CheckFigures_10 - CHAPTER 10 Acquisition and Disposition...

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