‘What are the primary accounting issues involved in the
establishment of a long-term asset, the depreciation...
‘What are the primary accounting issues involved in the
establishment of a long-term asset, the depreciation of a long-term
asset, and the sale of a long-term asset?
What are the primary accounting issues involved in the
establishment of a long-term asset, the depreciation of a long-term
asset, and the sale of a long-term asset?.
Using Excel create depreciation schedule for the Straight-Line
and Double-Declining-Methods for the following Long-Term
assets:
Asset 1 – Office Furniture
Acquisition cost $30,000
Residual value $5,000
Useful life 7 years--------
Asset 2 – Delivery Truck
Acquisition cost $40,000
Residual value $5,000
Useful life 5 years-------
Asset 3 – Computer
Acquisition cost $2000
Residual value $0
Useful life 4 years
For each asset create its own Tab (Sheet) in the Excel worksheet
and name the corresponding sheet by the asset.
At...
1. What is the difference between a short and long-term asset?
Provide an example of each one.
2. When we record an asset, what are the costs that are
capitalized?
3. What are land improvements as it relates to tangible assets?
Provide an example of one.
4. Some of the costs that can be incurred when buying an asset
include property taxes, insurance. What type of taxes and insurance
might be capitalized vs. expensed? Provide an example
In Robert Solow's long-term growth model What happens if
the depreciation rate of the economy increases? How is that going
to impact the steady-state per capita GDP, per capita capital, per
capita consumption etc?