The section titled Impairment of Long-Lived Assets can be found on page A-11 in the Home Depot
Question:
The section titled “Impairment of Long-Lived Assets” can be found on page A-11 in the Home Depot 2009 financial information in Appendix A. In this section, Home Depot explains procedures used to estimate the carrying value of stores closed. Use this section to answer the following questions:
a. Explain how Home Depot decides to close a store?
b. What amounts and types or categories of expenses related to the closed stores are recognized?
c. Compute the tax-related cash flow impact of the charges to SG&A resulting from the closed stores (assume a 35 percent tax rate).
d. What nonfinancial factors, related to the store closings, are mentioned by Home Depot? Name other nonfinancial factors you think are important.
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a Home Depot closed several stores in 2009 based on by comparing its undiscounted cash flows with it...View the full answer
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Rekha Singh
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Related Book For 
Financial and Managerial Accounting the basis for business decisions
ISBN: 978-0078111044
16th edition
Authors: Jan Williams, Susan Haka, Mark Bettner, Joseph Carcello
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