question archive New Saskatchewan plant Determine whether each expenditure related to the new Saskatchewan plant must be capitalized or expensed or whether it could be either (depends on policy choice)
New Saskatchewan plant Determine whether each expenditure related to the new Saskatchewan plant must be capitalized or expensed or whether it could be either (depends on policy choice)
Subject:BusinessPrice: Bought3
New Saskatchewan plant Determine whether each expenditure related to the new Saskatchewan plant must be capitalized or expensed or whether it could be either (depends on policy choice). Place the dollar amount in the appropriate column in the table below. Policy Choice to Capitalize Expense Capitalize or Expense Land Building Equipment Furniture Training costs Avoidable interest Part B: Used equipment purchased at auction Allocate the expenditure related to the used computer and printer bundle to each component, and identify whether each component must be capitalized or expensed or whether it could be either (depends on policy choice). Place the dollar amount allocated to each component in the appropriate column in the table below. Policy Choice to Capitalize Expense Capitalize or Expense Computer Printer Part C. Delivery truck disposition Account for the disposition of the delivery truck by preparing a journal entry in good form. Part D: Office equipment swap Determine the impact on the company's assets, liabilities, and net income of measuring the transaction with the carrying value versus the fair value. Write "increase, * *decrease," or "no impact" in each space. Carrying Value Fair Value Assets Liabilities Net income Part E: Vandal attack Determine the impact on the company's assets, liabilities, and net income of the three expenditures related to the vandal attack. Write "increase" decrease," or "no impact" in each space. Paint Glass Security System Assets Liabilities Net income Part F: Research and development costs Determine whether each expenditure is clearly a research cost or could potentially be a development cost (if the six criteria are met at the point when the costs are incurred). Place the dollar amount of each expenditure in the Research and Other Expenses or Potentially Development cost column. Research and Potentially Other Expenses Development Costs to determine how a video game would work with exercise equipment Design, testing, and construction of prototype equipment Costs to determine the best production process for the new equipment Advertising costs to alert customers about the new product Part G: Intangible assets and Goodwill Determine whether the assets listed are impaired, and if so, the amount of the writedown. Place an X in the Impaired or Not Impaired column for both assets (only one X per asset). If the asset is impaired, enter the amount of the writedown in the Writedown Required ($) column. Not Impaired (X) Impaired (X) Writedown Required ($) Customer list Goodwill
