Bundle: Accounting, Chapters 1-13, 26th + Working Papers, Chapters 1-17 For Warren/reeve/duchac's Accounting, 26th And Financial Accounting, 14th + ... For Warren/reeve/duchac's Accounting, 26th
26th Edition
ISBN: 9781337498159
Author: Carl Warren, Jim Reeve, Jonathan Duchac
Publisher: Cengage Learning
expand_more
expand_more
format_list_bulleted
Question
Chapter 10, Problem 2DQ
To determine
Fixed Assets: It refers to the long-term assets having a useful life of more than a year which is, acquired by a company to be used in its business activities, for generating revenue. Examples of fixed assets are Plant, Property, Equipment, Land, and Buildings.
To name: the account head for listing the vacant lot in the
Expert Solution & Answer
Trending nowThis is a popular solution!
Students have asked these similar questions
Bullwinkle Co. acquired an adjacent vacant lot with the hope of selling it in the future at a
gain. The lot is not intended to be used in Bullwinkle's business operations. Where should
such real estate be listed on the balance sheet?
A. blue ocean associate is looking to generate income from extra cash. The company purchased an old building, will be restored and sold at a profit. how should blue ocean classify the building on its book?
B. And if blue ocean had bought a lanf for the site of a new office, what depreciation method would you, as its newly hired accountant, suggest it uses for the land?
Smatter Corporation purchased land for a new building. Which of the following costs would not be included
in the cost of the land?
a. Purchase price of the land
b. Cost of demolishing an old garage located on the land
c. Cost of a new parking lot constructed on the lane
d. Brokerage commission paid to the real estate agent who handled the land transaction
Chapter 10 Solutions
Bundle: Accounting, Chapters 1-13, 26th + Working Papers, Chapters 1-17 For Warren/reeve/duchac's Accounting, 26th And Financial Accounting, 14th + ... For Warren/reeve/duchac's Accounting, 26th
Ch. 10 - ONeil Office Supplies has a fleet of automobiles...Ch. 10 - Prob. 2DQCh. 10 - Prob. 3DQCh. 10 - Prob. 4DQCh. 10 - Immediately after a used truck is acquired, a new...Ch. 10 - Keyser Company purchased a machine that has a...Ch. 10 - Is it necessary for a business to use the same...Ch. 10 - Prob. 8DQCh. 10 - For some of the fixed assets of a business, the...Ch. 10 - a. Over what period of time should the cost of a...
Ch. 10 - Straight-line depreciation A building acquired at...Ch. 10 - Straight-line depreciation Equipment acquired at...Ch. 10 - Units-of-activity depreciation A truck acquired at...Ch. 10 - Units-of-activity depreciation A tractor acquired...Ch. 10 - Double declining-balance depreciation A building...Ch. 10 - Double-declining-balance depreciation Equipment...Ch. 10 - Revision of depreciation Equipment with a cost of...Ch. 10 - Revision of depreciation A truck with a cost of...Ch. 10 - Capital and revenue expenditures On February 14,...Ch. 10 - Capital and revenue expenditures On August 7,...Ch. 10 - Sale of equipment Equipment was acquired at the...Ch. 10 - Sale of equipment Equipment was acquired at the...Ch. 10 - Prob. 10.7BPECh. 10 - Prob. 10.7APECh. 10 - Prob. 10.8BPECh. 10 - Prob. 10.8APECh. 10 - Prob. 10.9APECh. 10 - Prob. 10.9BPECh. 10 - Costs of acquiring fixed assets Melinda Stoffers...Ch. 10 - Prob. 10.2EXCh. 10 - Determining cost of land Northwest Delivery...Ch. 10 - Prob. 10.4EXCh. 10 - Prob. 10.5EXCh. 10 - Capital and revenue expenditures Quality Move...Ch. 10 - Nature of depreciation Tri-City Ironworks Co....Ch. 10 - Prob. 10.8EXCh. 10 - Prob. 10.9EXCh. 10 - Prob. 10.10EXCh. 10 - Depreciation by units-of-output method Prior to...Ch. 10 - Depreciation by two methods A John Deere tractor...Ch. 10 - Depreciation by two methods A storage tank...Ch. 10 - Partial-year depreciation Sandblasting equipment...Ch. 10 - Revision of depreciation A building with a cost of...Ch. 10 - Capital expenditure and depreciation; parital-year...Ch. 10 - Entries for sale of fixed asset Equipment acquired...Ch. 10 - Prob. 10.18EXCh. 10 - Depletion entries Big Sky Mining Co. acquired...Ch. 10 - Prob. 10.20EXCh. 10 - Book value of fixed assets Apple Inc. designs,...Ch. 10 - Balance sheet presentation List the errors you...Ch. 10 - Prob. 10.24EXCh. 10 - Prob. 10.23EXCh. 10 - Asset traded for similar asset A printing press...Ch. 10 - Prob. 10.26EXCh. 10 - Entries for trade of fixed asset On July 1, Twin...Ch. 10 - Entries for trade of fixed asset On October 1,...Ch. 10 - Allocating payments and receipts to fixed asset...Ch. 10 - Comparing three depreciation methods Montes Coffee...Ch. 10 - Depreciation by three methods; partial years...Ch. 10 - Prob. 10.4APRCh. 10 - Transactions for fixed assets, including sale The...Ch. 10 - Amortization and depletion entries Data related to...Ch. 10 - Allocating payments and receipts to fixed asset...Ch. 10 - Comparing three depreciation methods Waylander...Ch. 10 - Depreciation by three methods; partial years...Ch. 10 - Depreciation by two methods; sale of fixed asset...Ch. 10 - Transactions for fixed assets, including sale The...Ch. 10 - Amortization and depletion entries Data related to...Ch. 10 - Prob. 10.1CPCh. 10 - Prob. 10.2CPCh. 10 - Effect of depreciation on net income Tuttle...Ch. 10 - Fixed asset turnover: three industries The...
Knowledge Booster
Similar questions
- 1. Bullwinkle Co. acquired an adjacent vacant lot with the hope of selling it in the future at a gain. The lot is not intended to be used in Bullwinkle's business operations. Where should such real estate be listed on the balance sheet? 2. Distinguish between the accounting for capital expenditures and revenue expenditures. 3. Immediately after a used truck is acquired, a new motor is installed at a total cost of $3,850. Is this a capital expenditure or a revenue expenditure? 4. Keyser Company purchased a machine that has a manufacturer's suggested life of 20 years. The company plans to use the machine on a special project that will last 12 years. At the completion of the project, the machine will be sold. Over how many years should the machine be depreciated? 5. Is it necessary for a business to use the same method of computing depreciation for all classes of its depreciable assets and for financial statement purposes and in determining income taxes?arrow_forwardIf land is recorded at its net realizable value, this would be a sign that the company O has made an error in recording its property. O wants to determine net worth. O is not a going concern. O is changing its accounting for assets.arrow_forwardSmatter Corporation purchased land for a new building. Which of the following costswould not be included in the cost of the land?a. Purchase price of the landb. Cost of demolishing an old garage located on the landc. Cost of a new parking lot constructed on the landd. Brokerage commission paid to the real estate agent who handled the land transactionarrow_forward
- Please no coping from another site. Show the necessary workings on how you derived your answers. Answer all questions a to d.arrow_forwardWhich of the following is an example of a noncash activity? Purchase of land using cash proceeds from issuance of common stock. Purchase of land by issuing debt. Sale of land for less than its cost. Sale of land for more than its cost.arrow_forwardWhich statement concerning depreciation is false? a.The only property that has a determinable life is depreciable. B.Land is not depreciable. C.Intangible assets' capital costs are recovered through amortization, much like depreciation. D.Personal property converted to business use is not depreciable since it was once used for personal purposes.arrow_forward
- Bellow are elements in the financial statements on which the director of ABC Building Limited require advice: • In 2016, ABC Building Limited acquired several properties as investment properties. Since ABC has not adopted accounting policy in accounting for property as investment properties before, the financial director considered such adoption is change in accounting policy. ABC Building Limited has no investment property before 2016. • In 2018, ABC Building Limited proposed to change to the cost model instead of fair value model in accounting for its investment property in accordance with PSAK 13. Its financial director considered whether ABC could make such changes and, if change could be made, how ABC should account for the changes • In 2020, ABC Building limited decided to make a change in estimate as to the duration of depreciation of its building, increasing it from 20 to 30 years. Please Discuss how the above items should be dealt with in the financial statements of ABC…arrow_forwardOn December 31, 20x1, ABC Co. has no intention of selling a land classified as investment property measured at cost. However, on Jan. 2, 20x2, because of an unanticipated opportunity, ABC Co. sold the b ' at a very high profit. How should ABC Co. classify the land in its December 31, 20x1 statement of financial position? A. As held for sale asset measured at the sale price on January 2,20x; B. The land shall not be included in the December 31, 20x1 statement of financial position because it is already considered sold. C. As investment property measured at cost. D. As investment property measured at the sale price on January 20x2.arrow_forwardAccounting When you dispose of a property and end up with a gain or a loss, it may be treated in one of 2 ways. What are they? When you dispose of personal-use property, you usually do not have a capital gain. Why not? To calculate any capital gain or loss, you need to know the following 3 amounts: the proceeds of disposition the adjusted cost base (ACB) the outlays and expenses incurred to sell your property Using these three amounts, what is the formula to calculate your capital gain or loss? 4. Capital Gains are reported on Schedule 3. What line does the sale of Personal Use Property go on?arrow_forward
- Which of the following is an investment property? Property that is currently being redeveloped to be sold in the ordinary course of business operations. Property that is currently being developed for future use as owner-occupied. Property that is leased out to another entity under a finance lease Building rented out in an operating lease whereby the owner provides minimal services. Which of the following assets may be classified as investment property? Land Building Equipment Land and Building only Intangible asset If ancillary services provided to occupants of a property held are <List A>, the property is classified as <List B> A B a. significant investment property b. insignificant property, plant and equipment (PPE) c. significant allocated to investment property and PPE d. insignificant…arrow_forwardWhich of the following capital losses can be used to offset a capital gain made from the sale of an investment property? Select one:Capital loss made on the sale of a rare coinCapital loss made on the sale of a main residenceCapital loss made on the sale of a boatCapital loss made on the sale of sharesCapital loss made on the sale of an artworkarrow_forwardHow can bookkeepers and accountants steal from a property, and what steps can be taken toprevent it?arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Individual Income TaxesAccountingISBN:9780357109731Author:HoffmanPublisher:CENGAGE LEARNING - CONSIGNMENT
Financial Reporting, Financial Statement Analysis...FinanceISBN:9781285190907Author:James M. Wahlen, Stephen P. Baginski, Mark BradshawPublisher:Cengage Learning
Individual Income Taxes
Accounting
ISBN:9780357109731
Author:Hoffman
Publisher:CENGAGE LEARNING - CONSIGNMENT
Financial Reporting, Financial Statement Analysis...
Finance
ISBN:9781285190907
Author:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Publisher:Cengage Learning