Cindy is looking over some calculations on depreciation. One estimates the depreciation expense of a new bulldozer to be $3,500. The next calculation shows the depreciation expense of a recently purchased plot of land to be $2,300. The final calculation estimates the depreciation expense of a new warehouse to be $1,300. What is wrong with these calculations?   1.The land and bulldozer calculations are likely correct, but the warehouse calculation is likely incorrect as it should not have a lower depreciation value than the other two.   2.The warehouse and bulldozer calculations are likely fine, but the plot of land calculation is incorrect as depreciation does not apply to land.   3.The land and warehouse calculations are likely correct, but the bulldozer calculation is likely incorrect as it should not have a higher depreciation value than the other two.   4.The land and bulldozer calculations are likely fine, but the warehouse calculation is incorrect as depreciation does not apply to buildings.

Because it violates the historical cost principle, the lower of cost or net realizable value (LCNRV) rule is NOT allowed by IFRS. True False The following costs were incurred to acquire and prepare land for a new parking lot: purchase price of land, $900,000; cost to clear the land, $40,000; cost of paving, $35,000; and cost of lighting for the parking lot, $20,000. How much should be recorded in the land improvements account? a.$40,000 b.$20,000 c.$55,000 d.$35,000

Claudia is learning about depreciation and she is getting a little frustrated with the idea of accumulated depreciation. "Why can’t you just debit depreciation expense and credit equipment?" She complains. "It would be so much easier that way!" (1) What type of account is accumulated depreciation and why does it get used in the depreciation of fixed assets instead of doing it Claudia's way? (2) Does accumulated depreciation have a debit balance or a credit balance?   Part II Benny, an inexperienced accountant at Ace Plus, is about to post the monthly depreciation entries for the company's fixed assets. The depreciation amounts have already been calculated on a spreadsheet by the owner, who is not very knowledgeable in accounting. Benny's instructions are to post the following depreciation amounts for the month: Building - $1,100 Land - 500 Equipment - 800   What will Benny's journal entries look like if they are done correctly? Can each item "share" an accumulated depreciation account…

raxton Inc. is considering the write-off of a limited-life intangible because of its lack of profitability. Explain to the management of Braxton how to determine whether a write-off is permitted.