Chapter 8, Problem 21E

1.

Summary Introduction

Introduction:Plant building land improvement intangible assets etc are shown in the balance sheet and all assets is not intended turn into cash treated as long term assets. Long term asset exclude the depreciation from their respective asset. Generally long term asset refer to assets that have more than one year useful life.

To determine:The amount of cash used to purchase property and equipment.

2.

Summary Introduction

Introduction: Depreciation refers to the allocation of cost on fixed assets for its useful life. Business allocates depreciation for tax and accounting purpose. Land fixed is not depreciated by business depreciation in the mandate deduction on fixed assets

The expense charged on intangible assets over its expected useful life is termed as amortization.It includes goodwill,copyright,trademark, patents, franchisee and computer application.

To compute: Annual amortization and depreciation for G.

3.

Summary Introduction

Introduction: Plant building land improvement intangible assets etc are shown in the balance sheet and all assets is not intended turn into cash treated as long term assets. Long term asset exclude the depreciation from their respective asset. Generally long term asset refer to assets that have more than one year useful life.

To compute: The total amount net cash used in investment activities