发布时间 : 星期六 文章Financial Accounting 4e Magee Pfeiffer Dyckman Solution Chapter 8更新完毕开始阅读a200e331de80d4d8d15a4f86
M8-14. (15 minutes)
Straight-line depreciation: $40,000/10 = $4,000; 8 years x $4,000 = $32,000.
a. Cash (+A) ..............................................................................3,500 Accumulated depreciation (-XA, +A) .......................................32,000 Loss on sale of furniture and fixtures (+E, -SE) ......................4,500 Furniture and fixtures (-A) ......................................... 40,000 b. Transaction Sold furniture and fixtures for cash.
Cash Asset +3,500 Cash
Noncash - + Assets -40,000 Furniture and - Fixtures
Balance Sheet Contra Assets -32,000 Accum. Deprec.
= Liabi-Contrib. + + lities Capital
Earned Capital -4,500 Retained Earnings
Income Statement Revenues -
- Expenses = +4,500 Loss on
Sale of = Furniture and Fixtures
Net Income -4,500
M8-15. (15 minutes)
Twice the straight-line rate = 1/5 x 2 = 40%
Year 1: $75,000 x .4 = $30,000 Year 2: ($75,000 - $30,000) x .4 = 18,000 Year 3: ($75,000 - $30,000 - $18,000) x .4 = 10,800 Total accumulated depreciation $58,800
a. Cash (+A) .................................................................................. Accumulated depreciation (-XA, +A) .......................................... Machinery (-A) ................................................................. Gain on sale of machinery (+R, +SE) .............................. b. Transaction Sold
machinery for cash.
Cash Noncash - Asset + Assets +25,000 -75,000 Cash Machinery -
Balance Sheet Contra Liabi-Contrib. = + + Assets lities Capital -58,800 Accum. Deprec.
Earned Capital +8,800 Retained Earnings
25,000 58,800
75,000 8,800
Income Statement Revenues - Expenses =
Net Income +8,800 =
+8,800
Gain on - Sale of Machinery
?Cambridge Business Publishers, 2014
Solutions Manual, Chapter 8
8-5
M8-16.(15 minutes)
a. Straight-line depreciation b.
2013: ($145,800 - $5,400)/3 = $46,800; (8/12) x $46,800 = $31,200 2014: $46,800 Double-declining-balance depreciation
Preliminary computation: Twice straight-line rate = 2 x 100%/3 = 66?% ($145,800 x 66?%) = $97,200 2013: (8/12) x $97,200 = $64,800 2014: ($145,800 - $64,800) x 66?% = $54,000
M8-17. (20 minutes)
a. Under U.S. GAAP, capitalization of development costs is not allowed and all R&D costs must be expensed. Under IFRS, development costs are capitalized if there is the intention, feasibility and resources to bring the asset to completion, there exists the ability to use or sell the asset to generate an economic benefit. Otherwise the costs must be expensed.
b. Yes, impairment should be tested for annually.
M8-18. (20 minutes) a.
Year Book value Depreciation rate Depreciation expense 1 $50,000 2 x ? = 0.5 $25,000 2 25,000 2 x ? = 0.5 12,500 3 12,500 4,500 4 8,000 0*
*No depreciation is recorded in Year 4 because the asset is depreciated to its residual value of $8,000.
b.
Year 1 2 3 4 5
continued next page
Book value $50,000 30,000 18,000 10,800 6,480 Depreciation rate 2 x 1/5 = 0.4 2 x 1/5 = 0.4 2 x 1/5 = 0.4 2 x 1/5 = 0.4
Depreciation expense $20,000 12,000 7,200 4,320 3,480*
*$3,480 of depreciation is required in Year 5 to depreciate the asset to its residual value of $3,000.
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Financial Accounting, 4th Edition
?Cambridge Business Publishers, 2014
M8-18.concluded c.
Year Book value 1 $50,000 2 40,000 3 32,000 4 25,600 5 20,480 6 16,384 7 13,107 8 10,486 9 8,389 10 6,711
Depreciation rate 2 x 1/10 = 0.2 2 x 1/10 = 0.2 2 x 1/10 = 0.2 2 x 1/10 = 0.2 2 x 1/10 = 0.2 2 x 1/10 = 0.2 2 x 1/10 = 0.2 2 x 1/10 = 0.2 2 x 1/10 = 0.2
Depreciation expense $10,000 8,000 6,400 5,120 4,096 3,277 2,621 2,097 1,678 5,711*
* $5,711 of depreciation is required in Year 10 to depreciate the remaining value of the asset. Alternatively, DeFond could switch to straight-line depreciation in Year 7, recording $3,027 of depreciation in Years 7 through 10.
M8-19. (15 minutes) a.
Year Barrels extracted Depletion per barrel Depletion 2013 300,000 $32,000,000 / 4,000,000 = $8 $2,400,000 2014 500,000 $32,000,000 / 4,000,000 = $8 $4,000,000 2015 600,000 $32,000,000 / 4,000,000 = $8 $4,800,000 b.
i. Oil reserve (+A) .......................................................... 32,000,000 Cash (-A)............................................................... 32,000,000 ii. Oil inventory (+A) ....................................................... 2,400,000 Oil reserve (-A) ....................................................... 2,400,000 c.
+ Oil Reserve (A) - i. 32,000,000 2,400,000 Balance 29,600,000 + Oil Inventory (A) -
ii. 2,400,000 ii. Balance 2,400,000
?Cambridge Business Publishers, 2014
Solutions Manual, Chapter 8
8-7
M8-20.(15 minutes) a. Texas Instruments Intel Corp.
PPE turnover rates for 2007 $13,735/[($4,428+$3,680)/2]=3.39 $53,999/[($23,627+$17,899)/2]=2.60
Texas Instruments turns its PPE more quickly than does Intel.
b. PPE turnover rates increase with increases in sales volume relative to the dollar amount of PPE on the balance sheet. The PPE turnover rate is often a very difficult turnover rate to change, and typically requires creative thinking. Many companies are outsourcingthe manufacturing process in whole or in part to others in the supply chain. This is beneficial so long as the savings realized by the reduction of manufacturing assets more than offset the higher cost of the goods as these are now purchased rather than manufactured. Another approach is to utilize long-term operating assets in partnership with another firm, say in a joint venture.
M8-21. (15 minutes)
a. $4,801,914 / $38,851,259 = 12.4%.
Abbott?s R&D expenditure level could be compared to the R&D expenditure level for its competitors to gain a sense of the appropriateness of its R&D expenditures. The median value of R&D intensity for pharmaceutical companies is 19.6% in Exhibit 5.13 in Chapter 5. Abbott is one of the larger, more established firms in this industry and may have an R&D program that is more stable and less intensive than the median.
b. R&D costs must be expensed when incurred unless they are expenditures for depreciable assets that have alternative future uses (in which case the depreciation is expensed as recognized). As a result, the balance sheet does not reflect the costs incurred for long-term R&D assets. In addition, operating expenses are increased, thus reducing retained earnings. ($000) Transaction R&D
expenditures
Balance Sheet Cash Asset -4,801,914 Cash
Income Statement Contrib. + Capital
+
Noncash Liabi-= Assets lities =
+
Earned Capital -4,801,914 Retained Earnings
Revenues - -
Expenses +4,801,914 R&D Expense
= =
Net Income -4,801,914
?Cambridge Business Publishers, 2014 8-8
Financial Accounting, 4th Edition