intermediateaccountingInvestmentsinNoncurrentOperatingAssetsuAcquisition幻灯片.pptVIP

Investments in Noncurrent Operating Assets—Acquisition;What Costs Are Included in Acquisition Cost?;;(continues);(concluded);Tangible Assets—Land;Tangible Assets—Land Improvements;Tangible Assets—Building;Tangible Assets—Equipment;Intangible Assets;Goodwill;Basket Purchase;When no part of the purchase price can be related to specific assets, the entire amount must be allocated among the different assets acquired.;Deferred Payment;Deferred Payment;Deferred Payment;Deferred Payment;December 31, 2011—Made first payment of $7,189. Amortization of debt discount: $50,323 – $15,323 = $35,000; $35,000 ? 10% = $3,500;December 31, 2012—Made second payment of $7,189 and amortized debt discount.;Leasing;Exchange of Nonmonetary Assets;Acquisition by Issuing Securities;Self-Construction;Savings or Loss onSelf-Construction;Interest Capitalization;Interest Capitalization;Interest Capitalization;Interest Capitalization;Interest Capitalization Example;Cutler Industries, Inc.’s other debts are: 5-year notes payable, 11% interest $3,000,000 Mortgage on other plant, 9% interest 4,800,000 ;The following expenditures were incurred on the project during 2011.;Computation of the amount of interest to be capitalized for 2011 follows:;The amount of interest capitalized cannot exceed total interest incurred during the year. Total interest during 2011 was as follows:;The actual interest was $1,002,000 and the calculated interest was $192,500. Thus, the entry is as follows:;FASB Statement No. 34 requires disclosure of the total interest expense for the year and the amount capitalized. This disclosure can be made either in the body of the income statement or in a note to the statements.;Acquisition by Donationor Discovery;To illustrate the initial recognition of an asset retirement obligation, assume that Bryan Beach Company purchases and erects an oil platform at a total cost of $750,000. At the end of ten years, the platform must be dismantled and removed from the site at an estimated cost