Book Value of Fixed Assets Cannington, Inc., designs, manufactures, and markets personal computers and related software. The following information was taken from a recent annual report of Cannington: Property, Plant, and Equipment (in millions): Current Year Preceding Year Land and buildings $502,440 $291,415 Machinery, equipment, and internal-use software 477,318 376,830 Other fixed assets related to leases 607,952 457,220 Accumulated depreciation and amortization (638,099) (532,586) a. Compute the book value of the fixed assets for the current year and the preceding year. Current year book value i Preceding year book value A comparison of the book values of the current and preceding years indicates that they and accumulated depreciation reveals that Cannington purchased additional depreciation expense of $ million taken during the current year. b. Would you normally expect the book value of fixed assets to increase or decrease during the year? A comparison of the total cost million of additional fixed assets, which was offset by the

Book Value of Fixed Assets Cannington, Inc., designs, manufactures, and markets personal computers and related software. The following information was taken from a recent annual report of Cannington: Property, Plant, and Equipment (in millions): Current Year Preceding Year Land and buildings $502,440 $291,415 Machinery, equipment, and internal-use software 477,318 376,830 Other fixed assets related to leases 607,952 457,220 Accumulated depreciation and amortization (638,099) (532,586) a. Compute the book value of the fixed assets for the current year and the preceding year. Current year book value i Preceding year book value A comparison of the book values of the current and preceding years indicates that they and accumulated depreciation reveals that Cannington purchased additional depreciation expense of $ million taken during the current year. b. Would you normally expect the book value of fixed assets to increase or decrease during the year? A comparison of the total cost million of additional fixed assets, which was offset by the

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter7: Fixed Assets, Natural Resources, And Intangible Assets

Section: Chapter Questions

Problem 7.18E: Book value of fixed assets Apple. Inc., designs, manufactures, and markets personal computers...

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Book Value of Fixed Assets Cannington, Inc., designs, manufactures, and markets personal computers and related software. The following information was taken from a recent annual report of Cannington industries: Property, Plant, and Equipment (in millions): Current Year Preceding Year Land and buildings $519,320 $301,206 Machinery, equipment, and internal-use software 493,354 389,490 Office furniture and equipment 77,898 67,512 Other fixed assets related to leases 628,377 472,581 Accumulated depreciation and amortization (659,536) (550,479) a. Compute the book value of the fixed assets for the current year and the preceding year. Current year book value Preceding year book value b. Would you normally expect the book value of fixed assets to increase or decrease during the year?
Book Value of Fixed Assets Cannington, Inc., designs, manufactures, and markets personal computers and related software. The following information was taken from a recent annual report of Cannington: Property, Plant, and Equipment (in millions): Current Year Preceding Year Land and buildings $736,390 $427,106 Machinery, equipment, and internal-use software 699,571 552,293 Other fixed assets related to leases 891,032 670,115 Accumulated depreciation and amortization (935,215) (780,573) a. Compute the book value of the fixed assets for the current year and the preceding year. Current year book value $fill in the blank 1 Preceding year book value $fill in the blank 2 A comparison of the book values of the current and preceding years indicates that they . A comparison of the total cost and accumulated depreciation reveals that Cannington purchased $fill in the blank 4 million of additional fixed assets, which was offset by the additional…
Book Value of Fixed Assets Cannington, Inc., designs, manufactures, and markets personal computers and related software. The following information was taken from a recent annual report of Cannington: Property, Plant, and Equipment (in millions): Current Year Preceding Year Land and buildings $574,290 $333,088 Machinery, equipment, and internal-use software 545,576 430,718 Other fixed assets related to leases 694,891 522,604 Accumulated depreciation and amortization (729,348) (608,747) a. Compute the book value of the fixed assets for the current year and the preceding year. Current year book value Preceding year book value A comparison of the book values of the current and preceding years indicates that they Increased v. A comparison of the total cost and accumulated depreciation reveals that Cannington purchased million of additional fixed assets, which was offset by the additional depreciation expense of $ million taken during the current year. b. Would you normally expect the book…
Book value of fixed assets Apple. Inc., designs, manufactures, and markets personal computers (iPad’) and related software. Apple also manufactures and distributes music players (iPod’) along with related accessories and services, including the online distribution of third-party music. The following information was adapted from a recent annual report of Apple: Property. Plant, and Equipment (In millions): Accumulated depreciation and amortization (6,435) (3.991) a. Compute the book value of the fixed asset for Years I and 2 and explain the differences, if any. b. Would you normally expect the book value of fixed assets to increase or decrease during the year?
Plant and Equipment Your analysis of Moen Corporation's fixed asset accounts at yearend reveals the following information:1. Moen owns two tracts of land. The first, which cost $18,000, is being held as afuture building site. It has a current market value of $20,000. The second, whichcost $19,000, was purchased 10 years ago. The current office and factorybuildings are on this site. The land has a current market value of $56,000.2. Moen owns two buildings. The office building and the factory building wereboth built 10 years ago at a cost of $50,000 and $120,000, respectively. At thattime, each was expected to have a life of 30 years and a residual value of 10% oforiginal cost. They are being depreciated on a straight-line basis.3. Moen owns factory machinery with a total cost of $51,000 and accumulateddepreciation of $35,300. Included in factory machinery is one machine that cost$7,000 and has accumulated depreciation of $4,200. This machine is being heldfor resale and is not being used…
The following information was taken from a recent annual report of Harrison Company (in millions): Current Year Preceding Year Land and buildings $726 $361 Machinery, equipment, and internal-use software 595 470 Office furniture and equipment 94 81 Other fixed assets related to leases 760 569 Accumulated depreciation and amortization 894 644 Required: a. Compute the book value of the fixed assets for the current year and the preceding year. Book Value Current Year: $fill in the blank 1 million Preceding Year: $fill in the blank 2 million b. If a company is in an expansion phase, would you normally expet the book value of fixed assets to increase or decrease during the year?
how How can due entries? Intangibles: Balance Sheet Presentation and Income Statement Effects Bringle Company has provided information on intangible assets as follows: A patent was purchased from Lou Company for $1,845,000 on January 1, 2018. Bringle estimated the remaining useful life of the patent to be 15 years. The patent was carried in Lou's accounting records at a net book value of $1,635,000 when Lou sold it to Bringle. During 2019, a franchise was purchased from Rink Company for $470,000. In addition, 6% of revenue from the franchise must be paid to Rink. Revenue from the franchise for 2019 was $2,000,000. Bringle estimates the useful life of the franchise to be 5 years and takes a full year's amortization in the year of purchase. Bringle incurred R&D costs in 2019 as follows: Materials and equipment $150,000 Personnel 130,000 Indirect costs 69,000 $349,000 Bringle estimates that these costs will be recouped by December 31, 2020. On January 1, 2019,…
Required information [The following information applies to the questions displayed below] Assume that Timberline Corporation has 2023 taxable income of $278,000 for purposes of computing the $179 expense. It acquired the following assets in 2023: (Use MACRS Table 1, Table 2. Table 3. Table 4. and Table 5.) Furniture (7-year) Asset Purchase Date December 1 Basis $ 532,000 Computer equipment (5-year) February 28 Copier (5-year) Machinery (7-year) July 15 May 22 128,000 68,000 522,000 Total $ 1,250,000 Required: a-1. What is the maximum amount of $179 expense Timberline may deduct for 2023? a-2. What is Timberline's §179 carryforward to 2024, if any? a-1. Maximum §179 expense a-2. Maximum $179 carryforward to 2023
Finance Assume that Tim Corporation has 2020 taxable income of $240,000 for purposes of computing the $179 expense. It acquired the following assets in 2020: (Use MACRS Table 1, Table 2, Table 3, Table 4 and Table 5.) ASSET PURCHASE DATE BASIS Furniture (7-year) December 1$ 450,000 Computer equipment (5-year) February 28 $90,000 Copier (5-year) July 15 $30,000 Machinery (7-year) May 22 480,000 Total $ 1,050,000 c. What would Tim's maximum depreciation expense deduction be for 2020 if the machinery cost $3,500,000 instead of 480,000 and assuming no bonus depreciation?
Plant and Equipment Your analysis of Moen Corporation's fixed asset accounts at year end reveals the following information: 1. Moen owns two tracts of land. The first, which cost $18,000, is being held as a future building site. It has a current market value of $20,000. The second, which cost $20,000, was purchased 10 years ago. The current office and factory buildings are on this site. The land has a current market value of $56,000. 2. Moen owns two buildings. The office building and the factory building were both built 10 years ago at a cost of $50,000 and $120,000, respectively. At that time, each was expected to have a life of 30 years and a residual value of 10% of original cost. They are being depreciated on a straight- line basis. 3. Moen owns factory machinery with a total cost of $50,000 and accumulated depreciation of $35,400. Included in factory machinery is one machine that cost $7,000 and has accumulated depreciation of $4,200. This machine is being held for resale and is…
Intangibles: Balance Sheet Presentation and Income Statement Effects Valen Company has provided information on intangible assets as follows: A patent was purchased from Lou Company for $1,215,000 on January 1, 2018. Valen estimated the remaining useful life of the patent to be 15 years. The patent was carried in Lou's accounting records at a net book value of $955,000 when Lou sold it to Valen. During 2019, a franchise was purchased from Rink Company for $430,000. In addition, 4% of revenue from the franchise must be paid to Rink. Revenue from the franchise for 2019 was $2,100,000. Valen estimates the useful life of the franchise to be 10 years and takes a full year's amortization in the year of purchase. Valen incurred R&D costs in 2019 as follows: Materials and equipment $108,000 Personnel 133,000 Indirect costs 78,000 $319,000 Valen estimates that these costs will be recouped by December 31, 2020. On January 1, 2019, Valen estimates, based on new events, that the…
Allocating payments and receipts to fixed asset accountsThe following payments and receipts are related to land, land improvements, and buildings acquired for use in a wholesale ceramic business. The receipts are identified by an asterisk. A. Fee paid to attorney for title search.............. $2,500 B. Cost of real estate acquired as a plant site: Land 285,000 C. Delonquent real estate taxes on property, assumed by purchaser...... 15,500 D. Cost of razing and removing building acquired in B......... 5,000 E. Proceeds from sale of salvage materials from old building........ 4,000* F. Special assessment paid to city for extension of water main to the property...... 29,000 G. Architect's and engineer's fees for plans and supervision........ 60,000 H. Premium on one-year insurance policy during construction..... 6,000 I. Cost of filling and grading land............. 12,000 J. Money borrowed to pay building contactor....... 900,000* K. Cost of…