-How does Nike, Inc. address depreciation? How is it handled, and what happens if they have estimated useful life incorrectly?
-How do the notes in Nike, Inc.'s Form 10-K discuss impairments, and how do they handle these in their records?
You have a mine with the following characteristics:
2010 depletion expense:
Cost of natural resources less residual value $ 9,000,000
Land improvementsâ?"roads 975,000
Total cost to be depleted $ 9,975,000
Estimated tons of ore 3,000,000
Depletion cost per tonâ?"$9,975,000/3,000,000=
1 - You just got hired as an adjunct professor for a local university. You are teaching introductory accounting and just beginning a chapter on depreciation. A student asks, "Why is it necessary to have depreciation,depletion, and amortization expense? Aren't they all basically the same thing? Can't we just use one term for eac
This solution contains a Microsoft Power Point presentation with 55 slides that explains plant assets, depreciation, disposal of plant assets anddepletion. Determining the cost of land, land improvements, buildings, and equipment is discussed. Each of these topics contains slides which explain and teach the concept, illustrat
On July 24 of the current year, Dakota Mining Co. pays $3,580 for land estimated to contain 4,750000 tons of recoverable ore. It installs machinery costing $330000 that has a 8-year life and no salvage value and is capable of mining the ore deposit in 7 years. The machinery is paid for on July 26, six days before mining operat
1) Anna is studying the annual reports of three different companies that her accounting group will use for its term project. She sees that two of the companies have made investments in the common stock of Ebay, Inc. What concerns her is that one company has reported the investment as a current asset, while the other company has
Why are depreciation,depletion, and amortization expenses not reported on a cash-flow statement that reports operating activities by the direct method? Why and how are these expenses reported on a statement prepared by the indirect method?
Disposal of Plant Assets
E 14. Samson Company purchased a computer on January 2, 2009, at a cost of $1,250. The computer is expected to have a useful life of five years and a residual value of $125. Assume that the computer is disposed of on July 1, 2012. Record the depreciation expense for half a year and the disposal under