Chapter 7
Plant Assets, Natural Resources, and Intangibles
Check Points
(5 min.) CP 7-1
1. Property, Plant and Equipment Millions 2. Property, plant and equipment, at cost……………… $26,915 Less: Accumulated depreciation……………………… (13,007) Property, Plant and equipment, book value………… $13,908
Book value is less than cost because accumulated depreciation is subtracted from cost to compute book value.
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(5 min) CP 7-2
The related costs (real estate commission, back property tax, removal of a building, and survey fee) are included as part of the cost of the land because the buyer of the land must incur these costs to get the land ready for its intended use.
After the land is ready for use, the related costs (listed above) would be expensed.
(10 min.) CP 7-3
75,000 Land ($150,000 ? .50)……………………….
56,250 Building ($150,000 ? .375)………………….
18,750 Equipment ($150,000 ? .125)………………
Note Payable……………………………… 150,000 Estimated
Market
Percent of Total Value
Land…………………. $ 80,000 $80,000 / $160,000 = 50.0% Building…………….. 60,000 $60,000 / $160,000 = 37.5 Equipment………….. 20,000 $20,000 / $160,000 = 12.5 Total……………….… $160,000 100.0%
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(10-15 min.) CP 7-4
Income Statement
Revenues CORRECT Expenses UNDERSTATED Net income OVERSTATED Balance Sheet Current assets CORRECT Total liabilities CORRECT Plant assets OVERSTATED Owners’ equity OVERSTATED Total liabilities Total assets OVERSTATED and owners’ equity OVERSTATED -最新-
西方财务会计课后习题答案详细版.doc
