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 (B V) of the Plant and Equipment (P & E) and Patent at the end of 2018.

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What would the result be on these financial accounting question?

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 (B V) of the Plant and Equipment (P & E) and Patent at the end of 2018.

(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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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 (B V) of the Plant and Equipment (P & E) and Patent at the end of 2018.

(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 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 (B V) of the Plant and Equipment (P & E) and Patent at the end of 2018.

(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 (B V) of the Plant and Equipment (P & E) and Patent at the end of 2018.

(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 (B V) of the Plant and Equipment (P & E) and Patent at the end of 2018.

(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 (B V) of the Plant and Equipment (P & E) and Patent at the end of 2018.

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 (B V) of the Plant and Equipment (P & E) and Patent at the end of 2018.

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 - Prob. 11.10Q

Solution Summary: The author explains the straight-line method used to calculate depreciation and amortization on plant and equipment and patents.

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