Intermediate Accounting
1st Edition
ISBN: 9780132162302
Author: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella
Publisher: PEARSON
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Textbook Question
Chapter 11, Problem 11.23E
Disclosure of Property, Plant, and Equipment. Use the information in E11-13, part (a) to prepare the required footnote disclosure for Kurtis Koal Company, Inc.’s property, plant, and equipment for Years 1 and 2, including a statement of its accounting policy and a table with account balances.
E11-13.
| Year | Tons of Coal |
| 1 | 700,000 |
| 2 | 1,400,000 |
| 3 | 1,600,000 |
| 4 | 1,000,000 |
| 5 | 750,000 |
| 6 | 550,000 |
Required
Prepare the depreciation schedules for the machine assuming that Kurtis Koal used the following methods (each case is independent):
- a. Straight-line method.
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Copper Explorations recently acquired the rights to mine a new site. Equipment and a truck were purchased to begin mining
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<
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Record the depreciation on the truck.
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General…
(Classification Issues—Intangibles) The following is a list of items that could be included in the intangible assets section of the balance sheet.1. Investment in a subsidiary company.2. Timberland.3. Cost of engineering activity required to advance the design of a product to the manufacturing stage.4. Lease prepayment (6 months’ rent paid in advance).5. Cost of equipment obtained.6. Cost of searching for applications of new research findings.7. Costs incurred in the formation of a corporation.8. Operating losses incurred in the start-up of a business.9. Training costs incurred in start-up of new operation.10. Purchase cost of a franchise.11. Goodwill generated internally.12. Cost of testing in search for product alternatives.13. Goodwill acquired in the purchase of a business.14. Cost of developing a patent.15. Cost of purchasing a patent from an inventor.16. Legal costs incurred in securing a patent.17. Unrecovered costs of a successful legal suit to protect the patent.18. Cost of…
Conceptual Question
Identify whether or not each of the following items should be capitalized as intangible
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Chapter 11 Solutions
Intermediate Accounting
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