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Lecture

ACTG 1P91 Lecture Notes - Byrsonima Crassifolia, European Cooperation In Science And Technology, Fair Market Value


Department
Accounting
Course Code
ACTG 1P91
Professor
Linda Stillabower

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Class #9! ! ACTG 1P91! November. 8th, 2011
Inventory Turnover
COGS/AVG INVENTORY
Days in Inventory
365/Inventory Turnover
We have seen Cash - Bank Rec, AR - AFDA, Inventory - COGS, now we are looking at
PPE (Property, Plant, and Equipment) - Amortization Expense.
Measure amount - Allocate to periods benefited
Measure, Cost of Asset
Land
Building
Equipment
less Accumulated Amortization
= Net Book Value
Equipment !$82,000
Freight!$820
Legal Fees!X
Appraisal!X
Installation!X
If self-constructed
Interest!Part of Cost
Interest During Construction is part of the cost of the building
Interest After Construction is a finance expense
Basket Purchase - decision to buy entire company
Cash
AR
Inventory
Fixed Assets
etc.
all is sold to you at $12,987,412, how would you allocate the price among the assets
Keep the Book Value of assets, the remainder of the Fair Market Value must be put into
Goodwill
Cost Allocation - Matching Principle
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