Chapter9 handout Class 22

pdf

School

University Of Connecticut *

*We aren’t endorsed by this school

Course

MISC

Subject

Accounting

Date

Apr 3, 2024

Type

pdf

Pages

Uploaded by nickaspesi

Chapter 9, Long-Lived Tangible and Intangible Assets On January 2, Year 1, Fly Fast Airlines bought a new aircraft for $5,000,000. At the end of its EUL, it is expected to have a residual value of $600,000. Fly Fast estimates that the aircraft will be used in its operations for 16 years. How much depreciation expense would Fly Fast record for the year ended December 31, Year 1, under each of the following assumptions: a. The straight-line method is used. b. The double declining balance method is used c. The units of production method is used. It is estimated that the new aircraft have a useful life of 80,000 flying hours. It was flown 2,200 hours in Year 1. Ouch Company rents computers to local businesses and schools. You have 1,000 computers with an original cost of $200,000 and a book value of $160,000. As a result of changing technology, your computers are more difficult to rent so you must drastically reduce your rental price, which causes a decrease in estimated future cash flows. The fair value of the computers is estimated to be $125,000 because of their outdated technology. Your company should report an asset impairment loss of: A. $160,000 B. $125,000 C. $35,000 D. $0 What are the journal entries (there are two) to record the impairment loss? On June 30, Year 3 , Drew Corporation sold, for $50,000 cash, a piece of drilling machinery that had been in use since January 1, Year 1. The original cost of the machine was $100,000 and was depreciated using the double-declining-balance method with 10,000 residual value and a useful life of 5 years. Depreciation for Year 3 had not yet been recorded. Calculate the equipment’s book value at the date of sale. Calculate the gain or loss to be recorded at the date of sale. The journal entry to be recorded at the date of sale is:

Page 2 of 2 Amazon and Walmart are the two largest eCommerce companies in the United States. However, Amazon’s market share is a whopping 44.9% compared to Walmart’s 5.4% (Statista.com). Complete the following analysis and then we’ll discuss!  Round all numbers to one decimal point. Amazon Year ended 12/31 Walmart Year ended 1/31 (all numbers in millions) 2022 2021 2020 2023 2022 2021 Net Sales Revenue $ 513,983 $ 469,822 $ 386,064 $ 611,289 $ 572,754 $ 559,151 Net Fixed Assets, year-end 186,715 160,281 113,114 100,760 94,515 92,201 Average Net Fixed Assets (year 1 + year 2 / 2) Fixed Asset Turnover Ratio (sales revenue / average assets) Which company, in which year, most effectively used their long-lived tangible assets to generate revenues? A. Amazon, 2022 B. Amazon, 2021 C. Walmart, 2023 D. Walmart, 2022

Your preview ends here

Eager to read complete document? Join bartleby learn and gain access to the full version

Access to all documents
Unlimited textbook solutions
24/7 expert homework help

Related Documents

Chapter 9 Homework Questions.docx

16.05_ Hourly Exam 2 Fall 2015 VA.pdf

Audrey_Pickle_Ch 12 Assignment.docx

EXCEL TEMPLATES - Chapter 3.xlsx

Chapter 5 Auditing Homework.docx

Chapter7 handout Class18.pdf

E20-3 question and solution.docx

5312+Discussion+Forum+Grading+Rubric_2.docx

Section 10 inclass problems student.xlsx

Finance Group Project (Word).docx

ASS - Week 9 Lab .pdf

Week 7 FA Case.docx

Recommended textbooks for you

Intermediate Accounting: Reporting And Analysis

Accounting

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:Cengage Learning

Principles of Accounting Volume 1

Accounting

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax College

Financial Accounting: The Impact on Decision Make...

Accounting

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Cengage Learning

Financial Accounting Intro Concepts Meth/Uses

Finance

ISBN:9781285595047

Author:Weil

Publisher:Cengage

Cornerstones of Financial Accounting

Accounting

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Cengage Learning

Survey of Accounting (Accounting I)

Accounting

ISBN:9781305961883

Author:Carl Warren

Publisher:Cengage Learning

SEE MORE TEXTBOOKS

Recommended textbooks for you

Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:Cengage Learning
Principles of Accounting Volume 1
Accounting
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax College
Financial Accounting: The Impact on Decision Make...
Accounting
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Cengage Learning
Financial Accounting Intro Concepts Meth/Uses
Finance
ISBN:9781285595047
Author:Weil
Publisher:Cengage
Cornerstones of Financial Accounting
Accounting
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Cengage Learning
Survey of Accounting (Accounting I)
Accounting
ISBN:9781305961883
Author:Carl Warren
Publisher:Cengage Learning