【導(dǎo)讀】9:FixedAssets. 1. FixedAssets. A:AcquisitionCosts(P229). C:Non-MoaryExchange(P231-235). F:Depreciation(P236-239). G:Disposals&ImpairmentofValue(P239-240). H:Depletion(P240-240). I:Insurance(P240-240). L:R&DCost(P243). M9. 2. A.AcquisitionCosts. 3. AAcquisitionCost. -Notland. -Tangible. a)Land. b)Building. c)Equipment. 4. AAcquisitionCost. a)Purchased:valued@Historicalcosts. b)Donated:valued@FMVifknown. Valued@NBVifFMVisunknown. c)Self-developed:valued@DM+DL+VOH+%ofFOH. 5. AAcquisitionCost. 4.CostofEquipment. a)Formula. Invoiceprice. –Cash/Tradediscount. +Freight-in. CostofEquipment(B/S). 6. AAcquisitionCost. 5.CostofLand. a)Formula. Statedprice. +Broker’smissions. +Legalfees. +Drainingofswamps. +Sitedevelopment. CostofLand(B/S). 7. AAcquisitionCost. 6.CostofBuilding. a)Formula. Statedprice. +Architect’sfees. CostofBuilding(B/S). 8. QuestionTime…machineforuse.a)$155,000. b)$145,000. c)$135,000. d)$125,000. 9. QuestionTime…1.Answer:. Answer:a). Statedprice. Add:Shippingcost. Machinecost. $125,000. 20,000. 10,000. $155,000. 10. QuestionTime…a)$464,000. b)$460,000. c)$442,000. d)$422,000. $50,000. 10,000. 12,000. 8,000. 2.On12/01/08,BoydCo.purchaseda$400,000tractoflandfora. 11. QuestionTime…Answer:a). Statedprice. Add:Demol

　　

【正文】 000。 Acc DEP, $4,000) is traded for land and $3,000 in cash. The configuration of cash flow does not significantly differs after exchange Answer: To calculate recognized gain To calculate total gain FMV of machine Less: NBV of machine Gain $12,000 7,000 $5,000 $3,000 $3,000 + 9,000 Boot received Boot received + FV of asset received X Total gain X $5,000 = $1,250 FMV exchanged Less: Boot received FMV received $12,000 (3,000) $9,000 ① ② Exception ② ,③ + Boot received FMV exchanged Less: NBV exchanged G/L 49 C Nonmoary Exchange 14. Situation 10 Example: A machine with a FMV $12,000 (cost, $11,000。 Acc DEP, $4,000) is traded for land and $3,000 in cash. The configuration of C/F does not significantly differs after exchange Answer: Dr. Land $5,250 Dr. ACC DEP 4,000 Dr. Cash 3,000 Cr. Machine $11,000 Cr. Gain 1,250 To calculate cost of land NBV of machine Less: Boot received Add: Gain recognized Land $7,000 (3,000) 1,250 $5,250 To record land ③ ④ 50 Question Time… 1. A nonmoary exchange is recognized @ FMV of the assets exchanged unless: a) Exchange has mercial substance b) FMV is not determinable c) The assets are similar in nature d) The assets are dissimilar Answer: b) 51 Question Time… 2. On 03/31/08, Winn Co. traded in an old machine having a carrying amount of $16,800, and paid a cash difference of $6,000 for a new machine having a total cash price of $20,500. The cash flow from the new machine are expected to be significantly different than cash flow from the old machine. On 03/31/08, what amount of loss should Winn recognize on this exchange? a) $0 b) $2,300 c) $3,700 d) $6,000 52 Question Time… Answer: b) Cash price of asset received Less: Cash difference FMV of asset exchanged Less: NBV of asset exchanged Loss on nonmoary exchange $20,500 (6,000) $14,500 ( 16,800) $2,300 2. On 03/31/08, Winn Co. traded in an old machine having a carrying amount of $16,800, and paid a cash difference of $6,000 for a new machine having a total cash price of $20,500. The cash flow from the new machine are expected to be significantly different than cash flow from the old machine. On 03/31/08, what amount of loss should Winn recognize on this exchange? Asset exchanged Asset received Boot FMV 2 + Boot given 53 D. Purchase of Group Assets 54 D Purchase of Group Assets Formula Costs of all assets acquired * Market Value of A Market Value of all assets acquired Example: Asset 1 Asset 2 Asset 3 Total FMV $ 60,000 120,000 20,000 200,000 FMV Relative FMV 60/200 120/200 20/200 Total cash cost $ 150,000 150,000 150,000 (known) X X X Allocated cost $ 45,000 90,000 15,000 Asset 1 Asset 2 Asset 3 $ 45,000 90,000 15,000 Cash $ 150,000 Dr. Cr. 55 E. Capital amp。 Revenue Expenditures 56 E Please see P237 amp。 Handout 1 for details Capital amp。 Revenue Expenditures Categories of expenditures SubCategories Characteristics Accounting treatments Expensed when incurred Capitalized Other Debit (Credit) to asset Debit (Credit) to Acc. Dep. 1. Additions Extensions, enlargements, expansions X 2. Repairs and maintenance a. Ordinary: Reoccurring, relatively small expenditures i. Maintain normal operating condition X ii. Do not add materially to use value X iii. Do not extend useful life X b. Extraordinary (major): Not reoccurring, relatively large expenditures i. Primarily increase the quality and/or output of services X ii. Primarily extend useful life X 3. Replacement and improvements: Major ponent of asset is removed and replaced with the same type of ponent with parable performance capacities (replacement) or a different type of ponent having superior performance (betterment). a. Book value of old ponent is known i. Old ponent amount (X) X Recognize any proceed and loss (or gain) on old asset ii. New ponent outlay X b. Book value of old ponent is unknown i. Primarily increase the use value X ii. Primarily extends useful life X 4. Reinstallations and rearrangements: Provide greater efficiency in production or reduce production costs i. Material costs, benefits extend into future accounting periods X ii. No measurable future benefit X 57 E Capital amp。 Revenue Expenditures Capitalize vs. Expense Expense Capitalize Reduce ACC DEP Additions: increase quantity Improvement/ Replacement Increase life Increase usefulness Ordinary repair Extraordinary repair Increase life Increase usefulness √ √ √ √ √ √ To record capitalization Dr. Equipment Cr. Cash or A/P To record reduction of ACC DEP Dr. ACC DEP Cr. Cash or A/P To record expense Dr. Repair EXP Cr. Cash or A/P 58 F. Depreciation 59 F Depreciation 1. Introduction a) Annual charge to ine for asset use during the period b) The objective is to match asset cost with revenue produced c) Depreciation base = Cost – Salvage value (except for declining method) d) Change in depreciation method: change in accounting estimate e) Change in useful life or salvage value: change in accounting estimate Important: P239 60 F Depreciation 2. Straightline depreciation $10,000 asset, 4year life, $2,000 salvage value Example: Answer: Step 1: calculate annual depreciation Annual depreciation = (Cost – Salvage value) / No. of useful life = ($10,000 $2,000