Depreciation : The decrease in the value of long term tangible assets due to its use is known as depreciation. It is the allocation of the cost of long term tangible assets over the useful life of the asset. Intangibles assets: The assets that are not physical in nature, and add value to the business in the future are referred to as intangible assets. For example, goodwill , patents, copyrights. Impairment Loss: It is the difference between the current book value of the long term asset and the fair market value of the asset as on the impairment. To compute : The Book Value of the Plant and Equipment (P & E) and Patent at the end of 2016.

Question

Viggo Manufacturing estimates that overhead costs for the next year will be $2,800,000 for indirect labor and $750,000 for factory utilities. The company uses machine hours as its overhead allocation base. If 100,000 machine hours are planned for this next year, what is the company's plantwide overhead rate? Help

Answer 1

Question

Chapter 11, Problem 11.12P

(1)

To determine

Depreciation:

The decrease in the value of long term tangible assets due to its use is known as depreciation. It is the allocation of the cost of long term tangible assets over the useful life of the asset.

Intangibles assets:

The assets that are not physical in nature, and add value to the business in the future are referred to as intangible assets. For example, goodwill, patents, copyrights.

Impairment Loss:

It is the difference between the current book value of the long term asset and the fair market value of the asset as on the impairment.

To compute: The Book Value of the Plant and Equipment (P & E) and Patent at the end of 2016.

(2)

To determine

To explain: when should the plant and equipment and the patent be tested for impairment.

(3)

To determine

To explain: When should goodwill should be tested for impairment.

(4)

To determine

The amount of any impairment loss to be recorded, if any, for the three assets.

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Viggo Manufacturing estimates that overhead costs for the next year will be $2,800,000 for indirect labor and $750,000 for factory utilities. The company uses machine hours as its overhead allocation base. If 100,000 machine hours are planned for this next year, what is the company's plantwide overhead rate? Help

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Answer 2

Question

Chapter 11, Problem 11.12P

(1)

To determine

Depreciation:

The decrease in the value of long term tangible assets due to its use is known as depreciation. It is the allocation of the cost of long term tangible assets over the useful life of the asset.

Intangibles assets:

The assets that are not physical in nature, and add value to the business in the future are referred to as intangible assets. For example, goodwill, patents, copyrights.

Impairment Loss:

It is the difference between the current book value of the long term asset and the fair market value of the asset as on the impairment.

To compute: The Book Value of the Plant and Equipment (P & E) and Patent at the end of 2016.

(2)

To determine

To explain: when should the plant and equipment and the patent be tested for impairment.

(3)

To determine

To explain: When should goodwill should be tested for impairment.

(4)

To determine

The amount of any impairment loss to be recorded, if any, for the three assets.

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Answer 3

Question

Chapter 11, Problem 11.12P

(1)

To determine

Depreciation:

The decrease in the value of long term tangible assets due to its use is known as depreciation. It is the allocation of the cost of long term tangible assets over the useful life of the asset.

Intangibles assets:

The assets that are not physical in nature, and add value to the business in the future are referred to as intangible assets. For example, goodwill, patents, copyrights.

Impairment Loss:

It is the difference between the current book value of the long term asset and the fair market value of the asset as on the impairment.

To compute: The Book Value of the Plant and Equipment (P & E) and Patent at the end of 2016.

(2)

To determine

To explain: when should the plant and equipment and the patent be tested for impairment.

(3)

To determine

To explain: When should goodwill should be tested for impairment.

(4)

To determine

The amount of any impairment loss to be recorded, if any, for the three assets.

Expert Solution & Answer

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Answer 4

Question

Chapter 11, Problem 11.12P

(1)

To determine

Depreciation:

The decrease in the value of long term tangible assets due to its use is known as depreciation. It is the allocation of the cost of long term tangible assets over the useful life of the asset.

Intangibles assets:

The assets that are not physical in nature, and add value to the business in the future are referred to as intangible assets. For example, goodwill, patents, copyrights.

Impairment Loss:

It is the difference between the current book value of the long term asset and the fair market value of the asset as on the impairment.

To compute: The Book Value of the Plant and Equipment (P & E) and Patent at the end of 2016.

(2)

To determine

To explain: when should the plant and equipment and the patent be tested for impairment.

(3)

To determine

To explain: When should goodwill should be tested for impairment.

(4)

To determine

The amount of any impairment loss to be recorded, if any, for the three assets.

Expert Solution & Answer

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Answer 5

Chapter 11, Problem 11.12P

(1)

To determine

Depreciation:

The decrease in the value of long term tangible assets due to its use is known as depreciation. It is the allocation of the cost of long term tangible assets over the useful life of the asset.

Intangibles assets:

The assets that are not physical in nature, and add value to the business in the future are referred to as intangible assets. For example, goodwill, patents, copyrights.

Impairment Loss:

It is the difference between the current book value of the long term asset and the fair market value of the asset as on the impairment.

To compute: The Book Value of the Plant and Equipment (P & E) and Patent at the end of 2016.

(2)

To determine

To explain: when should the plant and equipment and the patent be tested for impairment.

(3)

To determine

To explain: When should goodwill should be tested for impairment.

(4)

To determine

The amount of any impairment loss to be recorded, if any, for the three assets.

Answer 6

Chapter 11, Problem 11.12P

(1)

To determine

Depreciation:

The decrease in the value of long term tangible assets due to its use is known as depreciation. It is the allocation of the cost of long term tangible assets over the useful life of the asset.

Intangibles assets:

The assets that are not physical in nature, and add value to the business in the future are referred to as intangible assets. For example, goodwill, patents, copyrights.

Impairment Loss:

It is the difference between the current book value of the long term asset and the fair market value of the asset as on the impairment.

To compute: The Book Value of the Plant and Equipment (P & E) and Patent at the end of 2016.

Answer 7

Chapter 11, Problem 11.12P

(1)

To determine

Depreciation:

The decrease in the value of long term tangible assets due to its use is known as depreciation. It is the allocation of the cost of long term tangible assets over the useful life of the asset.

Intangibles assets:

The assets that are not physical in nature, and add value to the business in the future are referred to as intangible assets. For example, goodwill, patents, copyrights.

Impairment Loss:

It is the difference between the current book value of the long term asset and the fair market value of the asset as on the impairment.

To compute: The Book Value of the Plant and Equipment (P & E) and Patent at the end of 2016.

Answer 8

(2)

To determine

To explain: when should the plant and equipment and the patent be tested for impairment.

Answer 9

(2)

To determine

To explain: when should the plant and equipment and the patent be tested for impairment.

Answer 10

(3)

To determine

To explain: When should goodwill should be tested for impairment.

Answer 11

(3)

To determine

To explain: When should goodwill should be tested for impairment.

Answer 12

(4)

To determine

The amount of any impairment loss to be recorded, if any, for the three assets.

Answer 13

(4)

To determine

The amount of any impairment loss to be recorded, if any, for the three assets.

Answer 14

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Ch. 11 - Prob. 11.1Q Ch. 11 - Depreciation is a process of cost allocation, not...Ch. 11 - Identify and define the three characteristics of...Ch. 11 - Discuss the factors that influence the estimation...Ch. 11 - What is meant by depreciable base? How is it...Ch. 11 - Prob. 11.6Q Ch. 11 - Prob. 11.7Q Ch. 11 - Why are time-based depreciation methods used more...Ch. 11 - Prob. 11.9Q Ch. 11 - Briefly explain the differences and similarities...

To explain: when should the plant and equipment and the patent be tested for impairment.

To explain: When should goodwill should be tested for impairment.

The amount of any impairment loss to be recorded, if any, for the three assets.

Chapter 11 Solutions