Business Administration 2257 Study Guide - Midterm Guide: Hot Air Balloon, Historical Cost, Trial Balance
9 Apr 2015
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Document Summary
The purpose of bird"s eye view ltd. is to give us more practice dealing with the various long-lived assets transactions. The case focuses on the following: the four methods of depreciation. double diminishing: how to account for trade-ins, disposals (retirements), and sales of long-lived assets, how to account for intangible assets, how to test and account for impairment, how to account for research and development. This tutorial will help you determine how to account for each of the transactions outlined in the case. We will deal with each transaction as it comes up in the case. If you have any questions you should consult your instructor. The first step of a trade in or exchange is to depreciate the asset from the last point we depreciated it until now, because we must account for the use of the asset until the day it"s sold.
