(8) - 16, 21, 34

(8) - 16, 21, 34 - Robert MacRae (260357622) Prof:...

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Robert MacRae (260357622) Prof: Catherine Fortin Accounting Pre-Class Chapter 8: 8-16) a) 1) Land 2) Land 3) Land 4) Expense 5) Expense 6) Land Improvements 7) Expense 8) Equipment 9) Equipment 10) Equipment 11) Expense 12) Equipment 13) Expense 14) Equipment 15) Expense 16) Expense b) If $100,000 is paid for a new air-conditioning system in an existing building I believe that the cost of the air conditioner should be capitalized and amortized at the same rate of the building. This makes sense because the air conditioning system would increase the value of the building, but at the same time it would have the same estimated useful life. In this case I would still capitalize the air conditioning system, but because it has a different estimated useful life I would account for amortization separately from the building. 8-21) a) 1. Straight-Line Amortization = (Original Cost – Estimated Residual Value) / Estimated useful life
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(8) - 16, 21, 34 - Robert MacRae (260357622) Prof:...

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