Portland Co. uses the straight-line depreciation method for depreciable assets. All assets are depreciated individually except manufacturing machinery, which is depreciated by the composite method. Required: 1. What factors should have influenced Portland’s selection of the straight-line depreciation method? 2. a. What benefits should derive from using the composite method rather than the individual basis for manufacturing machinery? b. How should Portland have calculated the manufacturing machinery’s annual depreciation in its first year of operation?

In the case study of Company XYZ's challenges in accounting for goodwill and intangible assets impairment, which factor poses a risk to the value of intangible assets such as patents and software? A) Technological advancements B) Annual amortization C) Lack of impairment testing D) Economic stability

What method does a company use to depreciate its property and equipment?  A. Activity-based method  B. Double-declining-balance method  C. Straight-line method

Answer the following questions: Required: a-1. Find the discussion of Property, Plant, and Equipment and depreciation methods used by Campbell's. Use data from the Campbell Soup Company annual report O Straight-line method O Double declining method O Written down value method a-2. Why the particular method is used for the purpose described. Straight-line depreciation is used for financial reporting purposes because depreciation expense will be lower than under any of the accelerated depreciation methods. O Straight-line depreciation is used for financial reporting purposes because depreciation expense will be higher than under any of the accelerated depreciation methods. a-3. What method do you think the company uses for income tax purposes? O Accelerated depreciation using the MACRS rates is probably used for tax purposes to minimize taxes payable. O Straight line Method using the MACRS rates is probably used for tax purposes to minimize taxes payable. Written down value Method using…

Changing the method used to calculate depreciation from method 1 to method 2 in one year, then back to method 1 in the next, and then back again to method 2, is a violation of which qualitative characteristic?

Property, plant and equipment (fixed assets) assets are depreciated because:   a. The accrual basis of accounting requires matching of costs to revenues.   b. Cash basis of accounting requires depreciation.   c. The book values equal market values.   d. The replacement cost of plant assets may fluctuate over time.

Which of the following costs incurred internally to create an intangible asset is generallyexpensed? a. Research and development costs.b. Filing costs.c. Legal costs.d. All of the above.

What is the effective life of an asset?   a. The total period of ownership of the asset, including when it is not installed and ready for use..   b. The period prior to the asset being abandoned or scrapped.   c. The period that the asset can be used for income-producing purposes.   d. All of the above.

The adjusted cost base (or capital cost) of an asset includes a number of costs. Indicate which cost would NOT be considered part of the capital cost. A) Legal fees incurred to acquire the asset. B) Duties paid on the asset. C) Fire and theft insurance paid on the asset. D) Non-refundable provincial sales taxes paid on the asset. E) An appropriate allocation of overhead.