Chapter 08

Chapter 08 - Chapter 8 Operating Assets: Property, Plant,...

Info iconThis preview shows pages 1–9. Sign up to view the full content.

View Full Document Right Arrow Icon
Chapter 8 Operating Assets: and Intangibles
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
(in millions) Land $ 195.9 Buildings 842.6 Machinery and equipment 1,661.7 Leasehold improvements 626.7 Construction in progress 81.4 $ 3,408.3 Less accumulated depreciation (1,750.6 ) Property, plant, and equipment (net) $ 1,657.7 Nike, Inc. Property, Plant, and Equipment At Cost Book Value
Background image of page 2
All costs necessary to acquire asset and prepare for intended intended use Examples: Purchase price Taxes paid at time of purchase Transportation charges Installation costs
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Group Asset Purchases
Background image of page 4
Group Asset Purchases Allocate cost of lump-sum purchase based on fair market values $75,000 $25,000 Allocated Cost Land = $30,000 Building = $90,000 Fair Market Value 75% X 25% X % of Market Value Cost $100,000 = $100,000 =
Background image of page 5

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
The Goal of Depreciation of Straight-Line Units of Production Accelerated Methods via With periods benefited Match costs of assets
Background image of page 6
$9,000 3-year life Straight-Line Method Allocates cost of asset evenly over its useful life $3,000 Year 1 $3,000 Year 2 $3,000 Year 3
Background image of page 7

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Calculate ExerCo’s depreciation of the machine for 2008 - 2012 using all three methods of depreciation. Remember—this never changes
Background image of page 8
Image of page 9
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 32

Chapter 08 - Chapter 8 Operating Assets: Property, Plant,...

This preview shows document pages 1 - 9. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online