Chapter 8: Q18DQ (page 386)
Question: Refer to Google’s recent balance sheet in Appendix A. What is the book value of its total net property, plant, and equipment assets on December 31, 2015?
The book value of Google’s total net property, plant and equipment assets on December 31, 2015 is $29.016 million.
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Answer each of the following related to international accounting standards.
a. Accounting for plant assets involves cost determination, depreciation, additional expenditures, and disposals. Is plant asset accounting broadly similar or dissimilar between IFRS and U.S. GAAP? Identify one notable difference between IFRS and U.S. GAAP in accounting for plant assets.
b. Describe how IFRS and U.S. GAAP treat increases in the value of plant assets subsequent to their acquisition (but before their disposition).
Question: On January 2, 2017, the Matthews Band acquires sound equipment for concert performances for \(65,800. The band estimates it will use this equipment for four years, during which time it anticipates performing about 200 concerts. It estimates that after four years it can sell the equipment for \)2,000. During the year 2017, the band performs 45 concerts. Compute the year 2017 depreciation using the unit-of-production method.
Question: On January 4 of this year, Diaz Boutique incurs a $105,000 cost to modernize its store. Improvements include new floors, ceilings, wiring, and wall coverings. These improvements are estimated to yield benefits for 10 years. Diaz leases its store and has eight years remaining on the lease. Prepare the entry to record (1) the cost of modernization and (2) amortization at the end of this current year.
Question: When do we know that a company has goodwill? When can goodwill appears on a company’s balance sheet?
Question: Refer to December 31, 2015, balance sheet of Samsung in Appendix A. What long-term assets discussed in this chapter are reported by the company?
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