Verizon Communications Inc. is a major telecommunications company in the United States.Two recent balance sheets for Verizon disclosed the following information regardingfixed assets:Beginning ofYear(in millions)End of Year(in millions)Property, plant, and equipmentLess accumulated depreciationProperty, plant, and equipment (net)$220,163$230,508140,561136,622$ 83,541$ 89,947Verizon's revenue for the year was $131,620 million. Assume that the fixed asset turnoverratio for the telecommunications industry averages approximately 1.1.a. Determine Verizon's fixed asset turnover ratio. Round to one decimal place.Interpret this ratio with respect to the industry average.b.

a.Determine fixed asset turnover ratio:

Answered: Verizon Communications Inc. is a major…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Required information [The following information applies to the questions displayed below.] The plant assets section of the comparative balance sheets of Anders Company is reported below. ANDERS COMPANY Comparative Year-End Balance Sheets 2021 Plant assets Equipment Accumulated depreciation Equipment Equipment, net Buildings Accumulated depreciation-Buildings Buildings, net $ 245,000 (125,000) $ 119,000 1 Cash received from the sale of building 2. Depreciation expense 3 Purchase of building $ 445,000 (139,000) $306,000 2020 $335,000 (236,000) $ 99,000 $ 465,000 (324,000) $ 141,000 During 2021, a building with a book value of $83,000 and an original cost of $365,000 was sold at a gain of $73,000. 1. How much cash did Anders receive from the sale of the building? 2. How much depreciation expense was recorded on buildings during 2021? 3. What was the cost of buildings purchased by Anders during 2021?
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At December 31, 2014, Navaro Corporation reported the following plant assets:. Land Buildings $5,289,000 $32,900,000 Less: Accumulated depreciation - buildings 21,023,775 11,876,225 Equipment 70,520,000 Less: Accumulated depreciation - equipment 8,815,000 61,705,000 Total plant assets $78,870,225 During 2015, the following selected cash transactions occurred. Apr. 1 Purchased land for $3,878,600. May 1 Sold equipment that cost $1,057,800 when purchased on January 1, 2008. The equipment was sold for $299,710. June 1 Sold land for $2,820,800. The land cost $1,763,000. July 1 Purchased equipment for $1,939,300. Dec. 31 Retired equipment that cost $1,234,100 when purchased on December 31, 2005. No salvage value was received. Record adjusting entries for depreciation for 2015 Prepare the plant assets section of Navaro's balance sheet at December 31 2015
a Determine cost of plant acquisitions. E9.1 (LO 1), C Writing The following expenditures relating to plant assets were made by Glenn Company during the first 2 months of 2022. 1. Paid $7,000 of accrued taxes at the time the plant site was acquired. 2. Paid $200 insurance to cover a possible accident loss on new factory machinery while the machinery was in transit. 3. Paid $850 sales taxes on a new delivery truck. 4. Paid $21,000 for parking lots and driveways on the new plant site. 5. Paid $250 to have the company name and slogan painted on the new delivery truck. 6. Paid $8,000 for installation of new factory machinery. 7. Paid $900 for a 2-year accident insurance policy on the new delivery truck. 8. Paid $75 motor vehicle license fee on the new truck. Instructions a. Explain the application of the historical cost principle in determining the acquisition cost of plant assets. b. List the numbers of the transactions, and opposite each indicate the account title to which each…
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Required information [The following information applies to the questions displayed below.] Timberly Construction makes a lump-sum purchase of several assets on January 1 at a total cash price of $830,000. The estimated market values of the purchased assets are building, $467,500; land, $243,100; land improvements, $56,100; and four vehicles, $168,300. 4. Compared to straight-line depreciation, does accelerated depreciation result in payment of less total taxes over the asset's life? Is tax payment less under accelerated depreciation?
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Required information [The following information applies to the questions displayed below.] The plant assets section of the comparative balance sheets of Anders Company is reported below. ANDERS COMPANY Comparative Year-End Balance Sheets 2021 Plant assets Equipment Accumulated depreciation-Equipment Equipment, net Buildings Accumulated depreciation-Buildings Buildings, net 1. Cash received from the sale of equipment 2. Depreciation expense 3. Purchase of equipment $ 180,000 (100,000) $ 80,000 $ $ 380,000 (100,000) $ 280,000 During 2021, equipment with a book value of $40,000 and an original cost of $210,000 was sold at a loss of $3,000. 1. How much cash did Anders receive from the sale of equipment? 2. How much depreciation expense was recorded on equipment during 2021? 3. What was the cost of new equipment purchased by Anders during 2021? 2020 37,000 $ 270,000 (210,000) $ 60,000 $ 400,000 (285,000) $ 115,000
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