Plant Assets. (Long-Lived Assets)

Transcription

1 Plant Assets (Long-Lived Assets)

2 Plant Assets

3 Plant Assets Acquiring

4 Plant Assets Acquiring Using

5 Plant Assets Acquiring Using Disposing

6 Acquiring Cost

7 Acquiring Cost All expenditures to get item to your location and ready to use

8 Using Depreciation

9 Using Depreciation decline in value

10 Using Depreciation decline in value

11 Using Depreciation Ž decline in value Ž decline in usefulness; systematic matching of expenses with time period

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13

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15 Using Recording

16 Using Recording Depreciation Expense Accumulated Depreciation XXX XXX

17 Using Recording Depreciation Expense Accumulated Depreciation Determining XXX XXX

18 Using Recording Depreciation Expense Accumulated Depreciation Determining Straight Line XXX XXX

19 Using Recording Depreciation Expense Accumulated Depreciation Determining Straight Line Units of Activity XXX XXX

20 Using Recording Depreciation Expense Accumulated Depreciation Determining Straight Line Units of Activity Declining Balance XXX XXX

21 Using Recording Depreciation Expense Accumulated Depreciation Determining Straight Line Units of Activity Declining Balance XXX (Sum-of-the-Years Digits) XXX

22 Using Recording Depreciation Expense Accumulated Depreciation Simplified Formula XXX XXX AMOUNT x RATE = XXX

23 Straight Line (Cost - Salvage) Est. Life in Years

24 Straight Line (Cost - Salvage) Est. Life in Years 1 years OR

25 Straight Line (Cost - Salvage) Est. Life in Years OR 1 years = SL rate

26 Straight Line (Cost - Salvage) Est. Life in Years OR 1 years = SL rate THEN

27 Straight Line (Cost - Salvage) Est. Life in Years OR 1 years = SL rate THEN (C - S) x SL rate

28 Units of Activity

29 Units of Activity (Cost - Salvage) Estimated Activity = Rate

30 Units of Activity (Cost - Salvage) Estimated Activity = Rate THEN Actual Activity x Rate = Depr

31 Declining Balance

32 Declining Balance Cost ) Accumulated Depreciation 4

33 Declining Balance Cost ) Accumulated Depreciation 4 Book Value

34 Declining Balance Cost ) Accumulated Depreciation 4 Book Value x twice* SL Rate = Depr

35 Declining Balance Cost ) Accumulated Depreciation 4 Book Value x twice* SL Rate = Depr * 200% called double declining balance

36 Declining Balance Cost ) Accumulated Depreciation 4 Book Value x twice* SL Rate = Depr * 200% called double declining balance; could also be 150% or 125%

37 Comparison of Results Amount x Rate = Depreciation

38 Comparison of Results SL Amount x Rate = Depreciation

39 Comparison of Results SL Amount x Rate = Depreciation Constant

40 Comparison of Results Amount x Rate = Depreciation SL Constant x Constant

41 Comparison of Results Amount x Rate = Depreciation SL Constant x Constant = Constant

42 Comparison of Results Amount x Rate = Depreciation SL Constant x Constant = Constant $ Years

43 Comparison of Results Amount x Rate = Depreciation SL Constant x Constant = Constant $ Years

44 Comparison of Results Amount x Rate = Depreciation SL Constant x Constant = Constant $ Years

45 Comparison of Results Amount x Rate = Depreciation SL Constant x Constant = Constant $ Years

46 Comparison of Results Amount x Rate = Depreciation SL Constant x Constant = Constant $ Years

47 Comparison of Results Amount x Rate = Depreciation SL Constant x Constant = Constant $ SL Years

48 Comparison of Results SL Constant x Constant = Constant DDB Amount x Rate = Depreciation $ SL Years

49 Comparison of Results Amount x Rate = Depreciation SL Constant x Constant = Constant DDB Declining $ SL Years

50 Comparison of Results Amount x Rate = Depreciation SL Constant x Constant = Constant DDB Declining x Constant $ SL Years

51 Comparison of Results Amount x Rate = Depreciation SL Constant x Constant = Constant DDB Declining x Constant = Declining $ SL Years

52 Comparison of Results Amount x Rate = Depreciation SL Constant x Constant = Constant DDB Declining x Constant = Declining $ SL Years DDB

53 Plant Assets U Acquiring U Using Disposing

54 Disposals of Assets

55 Discard Disposals of Assets

56 Disposals of Assets Discard Sell

57 Disposals of Assets Discard Sell Trade

58 Disposals of Assets Discard fully depr? Sell Trade

59 Disposals of Assets Discard fully depr? Sell Trade

60 Disposals of Assets Discard fully depr? Y: no G or L Sell Trade

61 Disposals of Assets Discard fully depr? Sell Y: no G or L N: Loss Trade

62 Discarding Assets Fully Depreciated Accumulated Depreciation Equipment bal cost

63 Discarding Assets Fully Depreciated Accumulated Depreciation Equipment Not Fully Depreciated bal cost

64 Discarding Assets Fully Depreciated Accumulated Depreciation Equipment Not Fully Depreciated Accumulated Depreciation Equipment bal bal cost cost

65 Discarding Assets Fully Depreciated Accumulated Depreciation Equipment bal cost Not Fully Depreciated Accumulated Depreciation Loss on Disposal of PA Equipment bal bk val cost

66 Disposals of Assets Discard Sell Trade

67 Disposals of Assets Discard Sell Trade

68 Disposals of Assets Discard Sell for exactly book value Trade

69 Disposals of Assets Discard for > book value = G Sell for exactly book value Trade

70 Disposals of Assets Discard for > book value = G Sell for exactly book value Trade for < book value = L

71 Sale of Assets For Exactly Book Value Cash (or other assets) Accumulated Depreciation Equipment rec d bal cost

72 Sale of Assets For > or < Book Value Cash (or other assets) Accumulated Depreciation Loss OR Gain on Disposal Equipment rec d bal loss gain cost

73 Disposals of Assets Discard Sell Trade

74 Disposals of Assets Discard Sell Trade Accounting (Tax)

75 Disposals of Assets Discard Sell Trade Gains Losses

76 Disposals of Assets Discard Sell Trade Gains NOT Recognized Losses

77 Disposals of Assets Discard Sell Trade Gains NOT Recognized Losses Recognized

78 Recognition of Loss Trades of Assets Accumulated Depreciation bal Equipment old

79 Trades of Assets Recognition of Loss Equipment Accumulated Depreciation new bal Equipment old

80 Trades of Assets Recognition of Loss Equipment Accumulated Depreciation new bal Equipment Cash (Notes Pay, etc.) old amt

81 Trades of Assets Recognition of Loss Equipment Accumulated Depreciation Loss on Disposal of Assets Equipment Cash (Notes Pay, etc.) new bal loss old amt

82 Trades of Assets Gains NOT Recognized Equipment new Accumulated Depreciation bal Gain on Disposal of Assets Equipment Cash (Notes Pay, etc.) gain old amt

83 Trades of Assets Gains NOT Recognized Equipment new Accumulated Depreciation bal Gain on Disposal of Assets Equipment Cash (Notes Pay, etc.) gain old amt

84 Trades of Assets Determining COST (Basis) of Assets Acquired by TRADE:

85 Trades of Assets Determining COST (Basis) of Assets Acquired by TRADE: FMV of New Asset Received

86 Trades of Assets Determining COST (Basis) of Assets Acquired by TRADE: FMV of New Asset Received + unrecognized loss

87 Trades of Assets Determining COST (Basis) of Assets Acquired by TRADE: FMV of New Asset Received + unrecognized loss ) unrecognized gain

88 Trades of Assets Determining COST (Basis) of Assets Acquired by TRADE: FMV of New Asset Received + unrecognized loss ) unrecognized gain = COST (Basis) of New Asset

89 Trades of Assets Gains NOT Recognized Equipment new Accumulated Depreciation bal Gain on Disposal of Assets Equipment Cash (Notes Pay, etc.) gain old amt

90 Trades of Assets Gains NOT Recognized Equipment Accumulated Depreciation NEW bal Equipment Cash (Notes Pay, etc.) old amt

91 Plant Assets U Acquiring U Using U Disposing

92 Who learned something today? Have a great week in Accounting!

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94 Plant Assets (Long-Lived Assets)

95 Plant Assets (Long-Lived Assets)

96 Plant Assets (Long-Lived Assets)

97 Plant Assets (Long-Lived Assets)

98 Plant Assets (Long-Lived Assets)

99 Plant Assets (Long-Lived Assets)

100 Plant Assets (Long-Lived Assets)

101 Plant Assets (Long-Lived Assets)

102 Plant Assets (Long-Lived Assets)

103 Plant Assets (Long-Lived Assets)

104 Plant Assets (Long-Lived Assets)

105 Plant Assets (Long-Lived Assets)

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