Lecture15 2010.11.03 PostClass

Lecture15 2010.11.03 PostClass - Lecture 15 Snap-On Tools...

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Unformatted text preview: Lecture 15 Snap-On Tools PP&E Todays Class Snap-On Tools Case Announcements Exam 2: Conflict requests should have heard from us now. Room Allocation information is available on webCafe. Announcements A Fitz JMHH G06 Fla to I SH DH 350 J to Lee SH DH 351 Leeds to Luo SH DH 1206 Ly to She CHEM 102 Shi to Z COHN G17 Snap-On Tools PP&E Question 1: Part a Suppose that at the beginning of 2004 Snap-On determined that its goodwill was impaired. The market value and expected discounted cash flows generated by this asset are $285 million. Record the impairment charge. Impairment amount = 417.6 - 285 = 132.6 Journal Entry: Loss on Impairment 132.6 Goodwill 132.6 Question 1: Part b Ignoring the effect of income taxes, consider the effect of the impairment on the following Increase Decrease No change Net Income: Cash Flow from Operating Activities: Increase Decrease No change Question 2: Part a Suppose that in 2004, Snap-On is building a new manufacturing facility. During 2004, it will recognize and pay $24 million in interest. It has determined that $8 million of this interest should be capitalized as part of the building. The building has not yet been placed in service (i.e., not yet subject to depreciation). Record the journal entry to capitalize the interest....
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Lecture15 2010.11.03 PostClass - Lecture 15 Snap-On Tools...

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