西方财务会计原版课件11.pptx

;Explain the concept of depreciation. Identify the factors involved in the depreciation process. Compare activity, straight-line, and decreasing-charge methods of depreciation. Explain special depreciation methods. Explain the accounting issues related to asset impairment. Explain the accounting procedures for depletion of natural resources. Explain how to report and analyze property, plant, equipment, and natural resources.;Depreciation;Allocating costs of long-term assets: Fixed assets = Depreciation expense Intangibles = Amortization expense Natural resources = Depletion expense;Depreciation - Method of Cost Allocation;Depreciation - Method of Cost Allocation;Depreciation - Method of Cost Allocation;Depreciation - Method of Cost Allocation;Depreciation - Method of Cost Allocation;Depreciation - Method of Cost Allocation;Depreciation - Method of Cost Allocation;Depreciation - Method of Cost Allocation;Depreciation - Method of Cost Allocation;Depreciation - Method of Cost Allocation;Depreciation - Method of Cost Allocation;Depreciation - Method of Cost Allocation;Depreciation - Method of Cost Allocation;Depreciation - Method of Cost Allocation;Depreciation - Method of Cost Allocation;Depreciation - Method of Cost Allocation;Depreciation - Method of Cost Allocation;Changes in Depreciation Rate Accounted for in the period of change and future periods (Change in Estimate) Not handled retrospectively Not considered errors or extraordinary items;Arcadia HS, purchased equipment for $510,000 which was estimated to have a useful life of 10 years with a salvage value of $10,000 at the end of that time. Depreciation has been recorded for 7 years on a straight-line basis. In 2010 (year 8), it is determined that the total estimated life should be 15 years with a salvage value of $5,000 at the end of that time. Questions: What is the journal entry to correct the prior years’ depreciation? Calculate the depreciation expense for 2010.;;;Impairm