MGAB02H3 Lecture Notes - Lecture 4: Canadian Intellectual Property Office, Icq, Intangible Asset
23 Jun 2015
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For each of the following items, enter the correct letter to the left to show the type of expenditure. Determining financial statement effects of acquisition of several assets in a basket purchase. Kline corporation acquired additional land and a building that included several pieces of equipment for ,000. The acquisition was settled as follows: cash, ,000; issuance of kline"s common shares, ,000; and signing of a long- term note, ,000. An appraiser estimated the market values to be ,000 for the land, ,000 for the building, and ,000 for the equipment. Indicate the accounts affected and the amount and direction (+ for increase and for decrease) of the effect of this acquisition on the accounting equation. Computing depreciation and carrying amount for two years by using alternative depreciation methods, and interpreting the impact on cash flows. Schrade company bought a machine for ,000 cash. The estimated useful life was four years, and the estimated residual value was ,000.
