Exhibit 10.4 presents a partial balance sheet for HP3, a creator and manufacturer of computer hardware and software and related

Question:

Exhibit 10.4 presents a partial balance sheet for HP3, a creator and manufacturer of computer hardware and software and related services, for its fiscal years ending October 31, 2012 and 2013.
a. HP3 uses the straight-line method to depreciate its buildings, leasehold improvements, machinery, and equipment. It recognized depreciation expense of $1,922 million during fiscal 2013. Compute the average total life and average age of its depreciable assets during fiscal 2013.
b. Did HP3 appear to abandon or dispose of any depreciable assets during fiscal 2013?
Explain.

Exhibit 10.4 presents a partial balance sheet for HP3, a

c. What is the likely rationale for treating Customer Contracts, Core Technology, Patents, and Product Trademarks as intangibles subject to amortization? Consider each of these four items separately.
d. HP3 uses the straight-line amortization method for intangibles subject to amortization and recognized $783 million of amortization during fiscal 2013. Compute the average total life and average age of intangibles subject to amortization for fiscal 2013.
e. HP3 acquired Casio Computer Company seven years ago. Why does HP3 treat the Casio brand name as an intangible not subject to amortization?
f. Did HP3 appear to make a corporate acquisition during fiscal 2013?Explain.

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Related Book For  answer-question

Financial Accounting An Introduction to Concepts, Methods and Uses

ISBN: 978-1133591023

14th edition

Authors: Roman L. Weil, Katherine Schipper, Jennifer Francis

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Question Posted: March 04, 2014 05:46:26