Financial Accounting: An Integrated Statements Approach, 2nd Edition

minus accumulated depreciation) of the asset is multiplied by this rate. To illustrate, the amount of annual double-declining-ba ...

Chapter 9 Fixed Assets and Intangible Assets 409 the declining-balance method is called an accelerated depreciation method. This ...

During the third year, the company estimates that the remaining useful life is eight years (instead of three) and that the resid ...

Chapter 9 Fixed Assets and Intangible Assets 411 value of the asset is removed from the accounts. The entry to record the dispos ...

Selling Fixed Assets The entry to record the sale of a fixed asset is similar to the entry illustrated above, ex- cept that the ...

Chapter 9 Fixed Assets and Intangible Assets 413 Patents Manufacturers may acquire exclusive rights to produce and sell goods wi ...

recorded as an asset. Thus, even though the Coca-Cola trademarks are extremely valu- able, they are not shown on the balance she ...

Chapter 9 Fixed Assets and Intangible Assets 415 REPORTING FIXED ASSETS AND INTANGIBLE ASSETS The amount of depreciation and amo ...

We capitalize the cost of improvements that extend the useful life of prop- erty and equipment when incurred. These capitalized ...

Chapter 9 Fixed Assets and Intangible Assets 417 major types of analyses are operational utilization analysis and financial util ...

Financial Utilization Analysis Fixed assets can also be evaluated by their ability to generate revenue. One measure of the reven ...

Chapter 9 Fixed Assets and Intangible Assets 419 SUMMARY OF LEARNING GOALS Depreciation and amortization are deducted from reven ...

GLOSSARY 420 Chapter 9 Fixed Assets and Intangible Assets Compute depreciation, using the following methods: straight-line, unit ...

Chapter 9 Fixed Assets and Intangible Assets 421 McCollum Company, a furniture wholesaler, acquired new equipment at a cost of $ ...

b.Describe the nature of depreciation as the term is used in accounting. Name the three factors that need to be considered in d ...

Chapter 9 Fixed Assets and Intangible Assets 423 Cristy Fleming owns and operates Quesenberry Print Co. During February, Quesenb ...

Hicks Co. incurred the following costs related to trucks and vans used in operating its delivery service: Removed a two-way rad ...

Chapter 9 Fixed Assets and Intangible Assets 425 a. Record the cost of the new alarm system enhancements on January 1, 2006. b. ...

Estimated Estimated Accumulated Miles Truck Residual Useful Depreciation at Operated No. Cost Value Life Beginning of Year Durin ...

Chapter 9 Fixed Assets and Intangible Assets 427 a. Compute the book value of the fixed assets for the current year and the prec ...