Indicate where the following items would ordinarily appear on the financial statements of Aleppo, Inc. for the

Question:

Indicate where the following items would ordinarily appear on the financial statements of Aleppo, Inc. for the year 2004.

(a) The service life of certain equipment was changed from 8 to 5 years. If a 5-year life had been used previously, additional depreciation of $425,000 would have been charged.

(b) In 2004 a flood destroyed a warehouse that had a book value of $1,600,000. Floods are rare in this locality.

(d) An income tax refund related to the 2001 tax year was received.

(e) In 2001, a supply warehouse with an expected useful life of 7 years was erroneously expensed.

(f) Aleppo, Inc. changed its depreciation from double declining to straight-line on machinery in 2004. The cumulative effect of the change was $925,000 (net of tax).

Depreciation
Depreciation is an important concept in accounting. By definition, depreciation is the wear and tear in the value of a noncurrent asset over its useful life. In simple words, depreciation is the cost of operating a noncurrent asset producing... Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...