Answered: What depreciation method does Airbnb…

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter10: Cost Recovery On Property: Depreciation, Depletion, And Amortization

Section: Chapter Questions

Problem 5DQ

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Similar questions

What contra account is used when recording and reporting the effects of depreciation? Why is it used?
Explain why depreciation on an existing asset is always irrelevant.
What are depreciation and its purpose? Does the book value of a fixed asset (cost minus accumulated depreciation) communicate to a user what the asset is worth? Why or why not? Should the financial statements reflect the value of fixed assets? Why or why not?
What is the difference between amortization and depreciation, and how are they applied to intangible assets?
Why is the cost of certain kinds of property not recoverable at all by way of de-preciation, depletion, or amortization deductions? In addition to answering that question, give three examples of the kinds of assets that are not subject to “cost recovery”
Why must we have an entry to remove fully depreciated fixed assets (no salvage value) from the books if there is no profit or loss on the disposal?
Which of the following must be recorded in the accounting records when an asset that is NOT held for sale is derecognized? A Removal of the asset. B Gain or loss on derecognition. C All of the above items must be recorded in the accounting records. D Depreciation up until the date of derecognition.
What is an intangible asset? Should all intangible assets be subject to amortization? Explain why or why not. Why are some intangible assets not amortized? What is the implication to the financial statements?
What is Salvage Value? Can you relate this concept to a non-accounting concept? The book explains the Straight - Line depreciation methods (page 396). There are other methods that are important to know. Is the idea of depreciation to match the net book value of the asset to the market value of the asset? Why or why not?
What are some of the reasons for the impairment of intangible assets such as Goodwill? What are some justifications for treating the write-down as a permanent decline in value of the asset(s)? What are some justifications for considering that there has been a permanent increase in the value of the asset(s)? A difference between the book value and the fair value often exists. What role do technology advances and obsolescence have in deciding that assets have been impaired? Should both decrease and increases in the asset(s) value be reported in the financial statements? Why or why not?
what is the ultimate purpose of long-term assets? How should the cost of these assets be allocated over the asset's useful life? Why is depreciation not synonymous with valuation?
How do businesses account for depletion of natural resources? What is the relevant AASB regarding natural resources and what is the intention of the standard setter? Do you think natural resources should be treated as depreciable assets - why /why not? Discuss

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What depreciation method does Airbnb employ and how does this depreciation method works? Does Airbnb have any impaired assets?