F-1 Fixed Asset Memo - this is not really a material amount we will not follow through on reporting this small mistake Lastly the machinery seems

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Apollo Shoes, Inc. Fixed Asset Memo Feb. 4, 2012 After auditing the Fixed Assets of Apollo Shoes, Inc., three concerns have been noted. First, Apollo seems to have capitalized some repair and repainting of a building for a total of $50,408. This should not be a capitalization; it should be expensed to repair and maintenance. We suggest that this amount be reported. Secondly, the Landrover purchased in July of 2008 should be tagged with $4,500 in depreciation for 2008, instead of the $5,000 listed. Therefore, the accumulated depreciation on this asset should be $31,500, instead of the $32,000 listed. Because
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Unformatted text preview: this is not really a material amount we will not follow through on reporting this small mistake. Lastly, the machinery seems to be under-depreciated according to their five-year Estimated Useful Life plan. The depreciation accumulated is only $185,051.43, while a five-year depreciated amount should be a total of $259,072. This leaves accumulated depreciation short by $74,020.57 per year. Consolidating these mistakes gives us a total of $124,428.57 in misreported dollars. Aside from these mistakes, Apollo does retain title and rights to all of the assets listed. F-1...
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This note was uploaded on 06/15/2011 for the course ECON 101 taught by Professor Anderson during the Spring '11 term at Owensboro Community and Technical College.

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