The accounts and balances shown below were taken from ACCCOB2 Company's trial balance on December 31, 2020. All adjusting entries have been made: Cash Prepaid rent Inventory Investment - FVPL Accounts receivable Sinking fund asset Investment in associates Property, plant & equipment, net Patents, net Wages payable Dividends payable Taxes payable Accounts payable Bonds Payable O P1,800,000 and P2,225,000 O P1,650,000 and P3,395,000 P 175,000 O P1650,000 and P2,375,000 O P1,800,000 and P3,795,000 136,000 820,000 153,000 366,000 525,000 1,020,000 1,700,000 150,000 250,000 140,000 228,000 How much should be reported in ACCCOB2's December 31, 2020 statement of financial position as current and non-current assets, respectively? 248,000 648,000
The accounts and balances shown below were taken from ACCCOB2 Company's trial balance on December 31, 2020. All adjusting entries have been made: Cash Prepaid rent Inventory Investment - FVPL Accounts receivable Sinking fund asset Investment in associates Property, plant & equipment, net Patents, net Wages payable Dividends payable Taxes payable Accounts payable Bonds Payable O P1,800,000 and P2,225,000 O P1,650,000 and P3,395,000 P 175,000 O P1650,000 and P2,375,000 O P1,800,000 and P3,795,000 136,000 820,000 153,000 366,000 525,000 1,020,000 1,700,000 150,000 250,000 140,000 228,000 How much should be reported in ACCCOB2's December 31, 2020 statement of financial position as current and non-current assets, respectively? 248,000 648,000
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter12: Intangibles
Section: Chapter Questions
Problem 10MC
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Depreciation Methods
The word "depreciation" is defined as an accounting method wherein the cost of tangible assets is spread over its useful life and it usually denotes how much of the assets value has been used up. The depreciation is usually considered as an operating expense. The main reason behind depreciation includes wear and tear of the assets, obsolescence etc.
Depreciation Accounting
In terms of accounting, with the passage of time the value of a fixed asset (like machinery, plants, furniture etc.) goes down over a specific period of time is known as depreciation. Now, the question comes in your mind, why the value of the fixed asset reduces over time.
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