Intermediate Accounting (2nd Edition)
Intermediate Accounting (2nd Edition)
2nd Edition
ISBN: 9780134730370
Author: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella
Publisher: PEARSON
Question
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Chapter 2, Problem 2.6E

a.

To determine

Whether acquisition of a computer system should be expensed or not.

b.

To determine

Whether acquired asset and useful-life provided is a correct practice or not.

c.

To determine

Whether to expense the overhaul stock amount to repairs and maintenance or not.

d.

To determine

Whether cost of new laptop for personal use is expensed as office equipment or not.

e.

To determine

Whether issuing financial statements quarterly and on annual basis both to its shareholders is correct or not.

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Students have asked these similar questions
AT & T company was depreciating its antennas over 20 years.  The total cost of the antennas accounted for 20 million dollars.  It was recently discovered that the antennas useful life is only seven years due to new technological development. With reference to the above scenario answer the following questions. What is the accounting implication in this situation and why? What promulgated Accounting Standards should be followed? Provide rationale. How and why should this discovery be recorded in the financial statements of the company?  If the company issues quarterly financial statements and the discovery is made in the third quarter, should this impact be shown prospectively or retroactively and in what specific time period?  As the accountant, what could you recommend to management and why?
Assume that you are the accountant for Computer Consultants. Prior to this year, Computer Consultants operated out of a leased office. However, the company purchased its own office building this year. The building is in an area where real estate values have been increasing an average of 6 percent per year. The owner of Computer Consultants has asked why you recorded depreciation on the building if real estate values are appreciating. Write a response to the owner explaining why depreciation must be recorded on the company’s accounting records.
This is business algebra please show your work so I will understand the question.

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Intermediate Accounting (2nd Edition)

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