专业英语会计学Chap.pptVIP

After updating the depreciation, the machine’s book value on September 30, 2005, is: a. $54,000. b. $46,000. c. $40,000. d. $60,000. Disposal of Plant and Equipment The machine’s sale resulted in: a. a gain of $6,000. b. a gain of $4,000. c. a loss of $6,000. d. a loss of $4,000. Disposal of Plant and Equipment Disposal of Plant and Equipment Prepare the journal entry to record the sale. Accounting depends on whetherassets are similar or dissimilar. AirplaneforAirplane TruckforAirplane Only situations where cash is paid will be demonstrated. Trading in Used Assetsfor New Ones Trading in Used Assetsfor New Ones On May 30, 2005, Essex Company exchanged a used airplane and $35,000 cash for a new airplane. The old airplane originally cost $40,000, had up-to-date accumulated depreciation of $30,000, and a fair value of $4,000. SIMILAR Trading in Used Assetsfor New Ones – Similar Assets The exchange resulted in a: a. gain of $6,000. b. loss of $6,000. c. loss of $4,000. d. gain of $4,000. Prepare a journal entry to record the exchange. Trading in Used Assetsfor New Ones – Similar Assets Trading in Used Assetsfor New Ones – Similar Assets Prepare the journal entry to record the trade. Noncurrent assetswithout physicalsubstance. Useful life isoften difficultto determine. Usually acquired for operational use. Often provideexclusive rightsor privileges. Intangible Assets Characteristics Patents Copyrights Leaseholds Leasehold Improvements Goodwill Trademarks and Trade Names Record at current cash equivalent cost, including purchase price, legal fees, and filing fees. Intangible Assets Amortization is the systematic write-off to expense of the cost of intangible assets over Their useful life or legal life, whichever is shorter. Use the straight-line method to amortize most intangible assets. Amortization The amount by which thepurchase price exceeds the fairmarket value of net assets acquired. Occurs