Ten Flags over Georgia paid $100,000 for a concession stand. Ten Flags started out depreciating the building
Question:
Ten Flags over Georgia paid $100,000 for a concession stand. Ten Flags started out depreciating the building straight-line over 20 years with zero residual value. After using the concession stand for three years, Ten Flags determines that the building will remain useful for only six more years. Record Ten Flags depreciation on the concession stand for year 4 by the straight-line method.
Step by Step Answer:
Depreciation Expense Concession Stand Accumulated Depreciation Co...View the full answer
Financial accounting
ISBN: 978-0136108863
8th Edition
Authors: Walter T. Harrison, Charles T. Horngren, William Bill Thomas
Related Video
In accounting terms, depreciation is defined as the reduction of the recorded cost of a fixed asset in a systematic manner until the value of the asset becomes zero or negligible. An example of fixed assets are buildings, furniture, office equipment, machinery, etc. The land is the only exception that cannot be depreciated as the value of land appreciates with time. Depreciation allows a portion of the cost of a fixed asset to be the revenue generated by the fixed asset. This is mandatory under the matching principle as revenues are recorded with their associated expenses in the accounting period when the asset is in use. This helps in getting a complete picture of the revenue
Students also viewed these Accounting questions
-
We have found evidence that an imaginary country called Frutopia is now exporting more fruit, and importing more wood, than it used to do ten years ago. This change was not caused by government...
-
Seven Flags over Georgia paid $180,000 for a concession stand. Seven Flags started out depreciating the building straight-line over 10 years with zero residual value. After using the concession stand...
-
Six Flags over Georgia paid $60,000 for a concession stand. Six Flags started out depreciating the building straight-line over 10 years with zero residual value. After using the concession stand for...
-
Which of these situations would require auditors to append an emphasis- of- matter paragraph about consistency to an otherwise unmodified opinion? a. Entity changed its estimated allowance for...
-
A large wrecking ball of mass m is resting against a wall. It hangs from the end of a cable that is attached at its upper end to a crane that is just touching the wall. The cable makes an angle of...
-
What is the "relational interest" approach? In what kinds of cases might this approach be used?
-
A certain bon vivant, wishing to ascertain the cause of his frequent hangovers, conducted the following experiment. On the first night, he drank nothing but whiskey and water; on the second night, he...
-
What is revaluation of plant assets? When should revaluation be applied?
-
Suppose a Summons and Complaint were filed on February 16, 2021 and personally served on the defendant on March 1, 2021, please calendar the following dates: a the day Proof of Service of Summons and...
-
1. The textbook lists 11 major community factors to use as selection criteria for choosing a location. Mary realizes that all factors are important; however, 11 are too many because it waters down...
-
Assume that on September 30, 2010, LoganAir, the national airline of Switzerland, purchased an Airbus aircraft at a cost of 45,000,000 ( is the symbol for the euro). LoganAir expects the plane to...
-
On January 1, 2010, ABC Airline Service purchased an airplane for $37,700,000. ABC Airline Service expects the plane to remain useful for six years and to have a residual value of $2,900,000. ABC...
-
In each case, show that the circle passes through the given point: a. (x 2) 2 + (y 5) 2 = 13, point (4, 8) b. (x + 7) 2 + (y 2) 2 = 65, point (0, 2) c. x 2 + y 2 = 25 2 , point (7, 24) d. (x 2a)...
-
How many lines of the following declaration contain a compiler error? A. None. B. One. C. Two. D. Three. E. Four. F. Five. 1: import java.lang.annotation.*; 2: @Inherited 3: public @interface Panic {...
-
What is the output of the following application? A. X B. Y C. The application completes without printing anything. D. ElectricBass is the first class to not compile. E. RockBand is the first class to...
-
How many lines of the following declaration contain a compiler error? A. None B. One C. Two D. Three E. Four F. Five. 1: public @interface Thermometer { int minTemp (); 2: 3: Integer maxTemp ()...
-
Which statement is true about the JDBC core classes? A. Driver is an implementation of DriverManager. B. A general Connection implementation is included in the JDK. C. A PreparedStatement uses bind...
-
Assuming @Weather is a valid repeatable annotation that takes a String, with its associated containing type annotation @Forecast, which of the following can be applied to a type declaration? (Choose...
-
Let \(u \in \mathcal{L}^{1}\left(\mathbb{R}^{n}, \lambda^{n}ight)\) and \(\epsilon>0\). Show that \(\int u(\epsilon x) d x=\epsilon^{-n} \int u(y) d y\).
-
Use the following data to answer the next two (2) questions: Product 1 Product 2 Product 3 Direct Material Cost $25,000 $30,000 $35,000 Direct Labor Cost $30,000 $40,000 $50,000 Direct Labor Hours...
-
You are the sales representative for an office supplies rental firm. An online university requested a visit from you to discuss the supply of printing equipment and accompanying consumables to...
-
The following items are taken from the 2008 balance sheet of Yahoo! Inc. (All dollars are in thousands.) Intangible assets ............... $3,926,749 Common stock ................. 6,282,504 Property...
-
These items are taken from the financial statements of Xenox Corporation for 2012. Retained earnings (beginning of year) ... $31,000 Utilities expense .............. 2,000 Equipment ..................
-
You are provided with the following information for Merrell Enterprises, effective as of its April 30, 2012, year-end. Accounts payable ........... $ 834 Accounts receivable ........... 810...
-
Kelso's has a return on equity of 15.2 percent, a debt-equity ratio of 44 percent, a capital intensity ratio of 1.08, a current ratio of 1.25, and current assets of $138,000. What is the profit...
-
The following condensed information was reported by Peabody Toys, Incorporated, for 2024 and 2023: Income statement information Net sales Net income Balance sheet information Current assets Property,...
-
A bond with face value of $1,000 has annual coupons, promised coupon rate of 8%, and 5 years to maturity. Investors require an expected return of 5% from this bond. The probability of default is 2%...
Study smarter with the SolutionInn App