9th Edition

ISBN: 9781259722660

Author: J. David Spiceland, Mark W. Nelson, Wayne M Thomas

Publisher: McGraw-Hill Education

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Textbook Question

Chapter 11, Problem 1CCTC

Target Case

• LO11–2, LO11–8, LO11–9

Target Corporation prepares its financial statements according to U.S. GAAP. Target’s financial statements and disclosure notes for the year ended January 30, 2016, are available in Connect. This material is also available under the Investor Relations link at the company’s website (www.target.com).

Required:

1. Compare the property and equipment listed in the balance sheet with the list in Note 14. What are the estimated useful lives for recording depreciation? Why is land not listed in Note 14?

2. Which depreciation method does Target use for property and equipment for financial reporting? Which depreciation method is used for tax purposes? Why might these methods be chosen?

3. How does Target record repairs and maintenance expense?

4. How does Target account for impairment of property and equipment? Were any impairments recorded for the year ended January 30, 2016? If so, what was the amount and what were the reasons for the impairments?

5. From Notes 15 and 16, what was the amount of intangible assets for the year ended January 30, 2016? Were any impairments related to intangible assets recorded for the year ended January 30, 2016? If so, what was the amount and what were the reasons for the impairments?

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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Chapter 11, Problem 11.16BYP

Chapter 12, Problem 12.1Q

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Chapter 11 Solutions

Intermediate Accounting

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

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Solution Summary: The author explains the four methods of depreciation: Straight-line method Sum-of-the-years’ digits method Double-declining balance method Impairment Loss.

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