Week 3 - 7. Yes, $700,000 Problem 6.18 1. Investments,...

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Suggested solutions to preparation questions – Week 3 Problem 6.14 1. Yes, prepayment, 10.5/12 x 10,000=$8,750 2. Yes, patent, $100,000 3. No asset 4. Yes, land. It could be valued at cost $500,000 or revalued to $750,000, depending on the LMR Ltd’s accounting policy. 5. Yes, printing machines $500,000; goodwill $400,000 6. Nil, internally generated goodwill is not recognized as an asset.
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Unformatted text preview: 7. Yes, $700,000 Problem 6.18 1. Investments, $8,500 2. Deposit on equipment, $5000 3. Inventory, $900 4. Nil 5. Nil 6. Inventory, 98% x $1200=$1176 Problem 9.7 1. Total cost of the asset = $1,000,000 + $7,500+ $18,000 = $1,025,500 2. Depreciation expense = $1,025,500/10 = $102,550 3. Accumulated depreciation = $102,550*2 = $205,100...
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This note was uploaded on 03/19/2012 for the course ACCT 1511 taught by Professor Kim during the Three '10 term at University of New South Wales.

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