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Chap009 notes

  1. 1. © The McGraw-Hill Companies, Inc., 2005McGraw-Hill/Irwin 9-1 PLANT AND INTANGIBLE ASSETS Chapter 9
  2. 2. © The McGraw-Hill Companies, Inc., 2005McGraw-Hill/Irwin 9-2 Long-lived assets acquired for use in business operations. Long-lived assets acquired for use in business operations. Similar to long-term prepaid expenses The cost of plant assets is the advance purchase of services. As years pass, and the services are used, the cost is transferred to depreciation expense. Plant AssetsPlant Assets
  3. 3. © The McGraw-Hill Companies, Inc., 2005McGraw-Hill/Irwin 9-3 Major Categories of Plant AssetsMajor Categories of Plant Assets L a n d , b u ild in g s , e q u ip m e n t , fu r n it u r e , fix t u r e s . L o n g - t e r m a s s e t s h a v in g p h y s ic a l s u b s t a n c e . T a n g i b l e P l a n t A s s e t s P a t e n t s , c o p y r ig h t s , t r a d e m a r k s , fr a n c h is e s , g o o d w ill. N o n c u r r e n t a s s e t s w it h n o p h y s ic a l s u b s t a n c e . I n t a n g i b l e A s s e t s O il r e s e r v e s , t im b e r , o t h e r m in e r a ls . S it e s a c q u ir e d fo r e x t r a c t in g v a lu a b le r e s o u r c e s . N a t u r a l R e s o u r c e s
  4. 4. © The McGraw-Hill Companies, Inc., 2005McGraw-Hill/Irwin 9-4 Acquisition. Allocation of the acquisition cost to expense over the asset’s useful life (depreciation). Sale or disposal. Acquisition. Allocation of the acquisition cost to expense over the asset’s useful life (depreciation). Sale or disposal. Accountable EventsAccountable Events
  5. 5. © The McGraw-Hill Companies, Inc., 2005McGraw-Hill/Irwin 9-5 Asset price Asset price . . . for getting the asset to the desired location. . . . for getting the asset to the desired location. . . . for getting the asset ready for use. . . . for getting the asset ready for use. CostCost Acquisition of Plant AssetsAcquisition of Plant Assets = Reasonable and necessary costs . . . Reasonable and necessary costs . . . +
  6. 6. © The McGraw-Hill Companies, Inc., 2005McGraw-Hill/Irwin 9-6 On May 4, Heat Co., an Ohio maker of stoves, buys a new machine from a Texas company. The new machine has a price of $52,000. Sales tax was computed at 8%. Heat Co. pays $500 shipping cost to get the machine to Ohio. After the machine arrives, set-up costs of $1,300 are incurred, along with $4,000 in testing costs. Compute the cost of Heat Co.’s new machine. On May 4, Heat Co., an Ohio maker of stoves, buys a new machine from a Texas company. The new machine has a price of $52,000. Sales tax was computed at 8%. Heat Co. pays $500 shipping cost to get the machine to Ohio. After the machine arrives, set-up costs of $1,300 are incurred, along with $4,000 in testing costs. Compute the cost of Heat Co.’s new machine. Determining CostDetermining Cost
  7. 7. © The McGraw-Hill Companies, Inc., 2005McGraw-Hill/Irwin 9-7 Determining CostDetermining Cost
  8. 8. © The McGraw-Hill Companies, Inc., 2005McGraw-Hill/Irwin 9-8 Improvements to land such as driveways, fences, and landscaping are recorded separately. Improvements to land such as driveways, fences, and landscaping are recorded separately. Cost includes real estate commissions, escrow fees, legal fees, clearing and grading the property. Cost includes real estate commissions, escrow fees, legal fees, clearing and grading the property. Land Improvements Land Improvements LandLand Special ConsiderationsSpecial Considerations
  9. 9. © The McGraw-Hill Companies, Inc., 2005McGraw-Hill/Irwin 9-9 Repairs made prior to the building being put in use are considered part of the building’s cost. Repairs made prior to the building being put in use are considered part of the building’s cost. BuildingsBuildings Special ConsiderationsSpecial Considerations EquipmentEquipment Related interest, insurance, and property taxes are treated as expenses of the current period. Related interest, insurance, and property taxes are treated as expenses of the current period.
  10. 10. © The McGraw-Hill Companies, Inc., 2005McGraw-Hill/Irwin 9-10 I think I’ll buy the whole thing; barn, land, and animals. Special ConsiderationsSpecial Considerations The allocation is based on the relative Fair Market Value of each asset purchased. The allocation is based on the relative Fair Market Value of each asset purchased. The total cost must be allocated to separate accounts for each asset. The total cost must be allocated to separate accounts for each asset. Allocation of a Lump-Sum PurchaseAllocation of a Lump-Sum Purchase
  11. 11. © The McGraw-Hill Companies, Inc., 2005McGraw-Hill/Irwin 9-11 Capital Expenditure Capital Expenditure Revenue Expenditure Revenue Expenditure Any material expenditure that will benefit several accounting periods. Any material expenditure that will benefit several accounting periods. To capitalize an expenditure means to charge it to an asset account. To capitalize an expenditure means to charge it to an asset account. Expenditure for ordinary repairs and maintenance. Expenditure for ordinary repairs and maintenance. To expense an expenditure means to charge it to an expense account. To expense an expenditure means to charge it to an expense account. Capital Expenditures and Revenue Expenditures Capital Expenditures and Revenue Expenditures
  12. 12. © The McGraw-Hill Companies, Inc., 2005McGraw-Hill/Irwin 9-12 The allocation of the cost of a plant asset to expense in the periods in which services are received from the asset. The allocation of the cost of a plant asset to expense in the periods in which services are received from the asset. Cost of plant assets Balance SheetBalance Sheet Assets: Plant and equipment Assets: Plant and equipment Income StatementIncome Statement Revenues: Expenses: Depreciation Revenues: Expenses: Depreciation as the services are received DepreciationDepreciation
  13. 13. © The McGraw-Hill Companies, Inc., 2005McGraw-Hill/Irwin 9-13 Book Value  Cost – Accumulated Depreciation Accumulated Depreciation  Contra-asset  Represents the portion of an asset’s cost that has already been allocated to expense. Causes of Depreciation  Physical deterioration  Obsolescence Book Value  Cost – Accumulated Depreciation Accumulated Depreciation  Contra-asset  Represents the portion of an asset’s cost that has already been allocated to expense. Causes of Depreciation  Physical deterioration  Obsolescence DepreciationDepreciation
  14. 14. © The McGraw-Hill Companies, Inc., 2005McGraw-Hill/Irwin 9-14 Cost - Residual Value Years of Useful Life Depreciation Expense per Year = Straight-Line DepreciationStraight-Line Depreciation
  15. 15. © The McGraw-Hill Companies, Inc., 2005McGraw-Hill/Irwin 9-15 On January 1, 2005, Bass Co. buys a new boat. Bass Co. pays $24,000 for the boat. The boat has an estimated residual value of $3,000 and an estimated useful life of 5 years. Compute depreciation for 2005 using the straight-line method. On January 1, 2005, Bass Co. buys a new boat. Bass Co. pays $24,000 for the boat. The boat has an estimated residual value of $3,000 and an estimated useful life of 5 years. Compute depreciation for 2005 using the straight-line method. Straight-Line DepreciationStraight-Line Depreciation
  16. 16. © The McGraw-Hill Companies, Inc., 2005McGraw-Hill/Irwin 9-16 Bass Co. will record $4,200 depreciation each year for five years. Total depreciation over the estimated useful life of the boat is: Bass Co. will record $4,200 depreciation each year for five years. Total depreciation over the estimated useful life of the boat is: Salvage ValueSalvage Value Straight-Line DepreciationStraight-Line Depreciation
  17. 17. © The McGraw-Hill Companies, Inc., 2005McGraw-Hill/Irwin 9-17 When an asset is acquired during the year, depreciation in the year of acquisition must be prorated. When an asset is acquired during the year, depreciation in the year of acquisition must be prorated. Half-Year Convention In the year of acquisition, record six months of depreciation. Half-Year Convention In the year of acquisition, record six months of depreciation. ½ Depreciation for Fractional PeriodsDepreciation for Fractional Periods
  18. 18. © The McGraw-Hill Companies, Inc., 2005McGraw-Hill/Irwin 9-18 Half-Year ConventionHalf-Year Convention Using the half-year convention, calculate the straight-line depreciation on December 31, 2005, for equipment purchased in 2005. The equipment cost $75,000, has a useful life of 10 years and an estimated salvage value of $5,000. Using the half-year convention, calculate the straight-line depreciation on December 31, 2005, for equipment purchased in 2005. The equipment cost $75,000, has a useful life of 10 years and an estimated salvage value of $5,000. Depreciation = ($75,000 - $5,000) ÷ 10 = $7,000 for a full year Depreciation = $7,000 × 1 /2 = $3,500 Depreciation = ($75,000 - $5,000) ÷ 10 = $7,000 for a full year Depreciation = $7,000 × 1 /2 = $3,500
  19. 19. © The McGraw-Hill Companies, Inc., 2005McGraw-Hill/Irwin 9-19 Depreciation in the early years of an asset’s estimated useful life is higher than in later years. Depreciation in the early years of an asset’s estimated useful life is higher than in later years. The double-declining balance depreciation rate is 200% of the straight-line depreciation rate of 1/Useful Life. The double-declining balance depreciation rate is 200% of the straight-line depreciation rate of 1/Useful Life. Declining-Balance MethodDeclining-Balance Method
  20. 20. © The McGraw-Hill Companies, Inc., 2005McGraw-Hill/Irwin 9-20 On January 1, 2005, Bass Co. buys a new boat. Bass Co. pays $24,000 for the boat. The boat has an estimated residual value of $3,000 and an estimated useful life of 5 years. Compute depreciation for 2005 using the double-declining balance method. On January 1, 2005, Bass Co. buys a new boat. Bass Co. pays $24,000 for the boat. The boat has an estimated residual value of $3,000 and an estimated useful life of 5 years. Compute depreciation for 2005 using the double-declining balance method. Declining-Balance MethodDeclining-Balance Method
  21. 21. © The McGraw-Hill Companies, Inc., 2005McGraw-Hill/Irwin 9-21 Compute depreciation for the rest of the boat’s estimated useful life. Compute depreciation for the rest of the boat’s estimated useful life. Declining-Balance MethodDeclining-Balance Method Total depreciation over the estimated useful life of an asset is the same using either the straight-line method or the declining-balance method. Total depreciation over the estimated useful life of an asset is the same using either the straight-line method or the declining-balance method.
  22. 22. © The McGraw-Hill Companies, Inc., 2005McGraw-Hill/Irwin 9-22 Estimates of Useful Life and Residual Value  May differ from company to company.  The reasonableness of management’s estimates is evaluated by external auditors. Principle of Consistency  Companies should avoid switching depreciation methods from period to period. Estimates of Useful Life and Residual Value  May differ from company to company.  The reasonableness of management’s estimates is evaluated by external auditors. Principle of Consistency  Companies should avoid switching depreciation methods from period to period. Financial Statement DisclosuresFinancial Statement Disclosures
  23. 23. © The McGraw-Hill Companies, Inc., 2005McGraw-Hill/Irwin 9-23 So depreciation is an estimate. So depreciation is an estimate. Predicted salvage value Predicted salvage value Predicted useful life Predicted useful life Over the life of an asset, new information may come to light that indicates the original estimates need to be revised. Over the life of an asset, new information may come to light that indicates the original estimates need to be revised. Revising Depreciation RatesRevising Depreciation Rates
  24. 24. © The McGraw-Hill Companies, Inc., 2005McGraw-Hill/Irwin 9-24 Revising Depreciation RatesRevising Depreciation Rates On January 1, 2002, equipment was purchased that cost $30,000, has a useful life of 10 years and no salvage value. During 2005, the useful life was revised to 8 years total (5 years remaining). Calculate depreciation expense for the year ended December 31, 2005, using the straight- line method. On January 1, 2002, equipment was purchased that cost $30,000, has a useful life of 10 years and no salvage value. During 2005, the useful life was revised to 8 years total (5 years remaining). Calculate depreciation expense for the year ended December 31, 2005, using the straight- line method.
  25. 25. © The McGraw-Hill Companies, Inc., 2005McGraw-Hill/Irwin 9-25 When our estimates change, depreciation is: When our estimates change, depreciation is: Book value at date of change Salvage value at date of change Remaining useful life at date of change – Revising Depreciation RatesRevising Depreciation Rates Asset cost 30,000$ Accumulated depreciation, 12/31/2004 ($3,000 per year × 3 years) 9,000 Remaining book value 21,000$ Divide by remaining life ÷ 5 Revised annual depreciation 4,200$
  26. 26. © The McGraw-Hill Companies, Inc., 2005McGraw-Hill/Irwin 9-26 If the cost of an asset cannot be recovered through future use or sale, the asset should be written down to its net realizable value. If the cost of an asset cannot be recovered through future use or sale, the asset should be written down to its net realizable value. Impairment of Plant AssetsImpairment of Plant Assets
  27. 27. © The McGraw-Hill Companies, Inc., 2005McGraw-Hill/Irwin 9-27 Update depreciation to the date of disposal. Update depreciation to the date of disposal. Recording cash received (debit). Recording cash received (debit). Removing accumulated depreciation (debit). Removing accumulated depreciation (debit). Removing the asset cost (credit). Removing the asset cost (credit). Recording a gain (credit) or loss (debit). Recording a gain (credit) or loss (debit). Disposal of Plant and EquipmentDisposal of Plant and Equipment Journalize disposal by:Journalize disposal by:
  28. 28. © The McGraw-Hill Companies, Inc., 2005McGraw-Hill/Irwin 9-28 If Cash > BV, record a gain (credit). If Cash < BV, record a loss (debit). If Cash = BV, no gain or loss. If Cash > BV, record a gain (credit). If Cash < BV, record a loss (debit). If Cash = BV, no gain or loss. Recording cash received (debit). Recording cash received (debit). Removing accumulated depreciation (debit). Removing accumulated depreciation (debit). Removing the asset cost (credit). Removing the asset cost (credit). Recording a gain (credit) or loss (debit). Recording a gain (credit) or loss (debit). Disposal of Plant and EquipmentDisposal of Plant and Equipment
  29. 29. © The McGraw-Hill Companies, Inc., 2005McGraw-Hill/Irwin 9-29 On September 30, 2005, Evans Map Company sells a machine that originally cost $100,000 for $60,000 cash. The machine was placed in service on January 1, 2000. It has been depreciated using the straight-line method with an estimated salvage value of $20,000 and an estimated useful life of 10 years. Let’s answer the following questions. On September 30, 2005, Evans Map Company sells a machine that originally cost $100,000 for $60,000 cash. The machine was placed in service on January 1, 2000. It has been depreciated using the straight-line method with an estimated salvage value of $20,000 and an estimated useful life of 10 years. Let’s answer the following questions. Disposal of Plant and EquipmentDisposal of Plant and Equipment
  30. 30. © The McGraw-Hill Companies, Inc., 2005McGraw-Hill/Irwin 9-30 The amount of depreciation recorded on September 30, 2005, to bring depreciation up to date is: a. $8,000. b. $6,000. c. $4,000. d. $2,000. The amount of depreciation recorded on September 30, 2005, to bring depreciation up to date is: a. $8,000. b. $6,000. c. $4,000. d. $2,000. Annual Depreciation: ($100,000 - $20,000) ÷ 10 Yrs. = $8,000 Depreciation to Sept. 30: 9/12 × $8,000 = $6,000 Disposal of Plant and EquipmentDisposal of Plant and Equipment
  31. 31. © The McGraw-Hill Companies, Inc., 2005McGraw-Hill/Irwin 9-31 After updating the depreciation, the machine’s book value on September 30, 2005, is: a. $54,000. b. $46,000. c. $40,000. d. $60,000. After updating the depreciation, the machine’s book value on September 30, 2005, is: a. $54,000. b. $46,000. c. $40,000. d. $60,000. Cost 100,000$ Accumulated Depreciation: (5 yrs. × $8,000) + $6,000 = 46,000 Book Value 54,000$ Disposal of Plant and EquipmentDisposal of Plant and Equipment
  32. 32. © The McGraw-Hill Companies, Inc., 2005McGraw-Hill/Irwin 9-32 The machine’s sale resulted in: a. a gain of $6,000. b. a gain of $4,000. c. a loss of $6,000. d. a loss of $4,000. The machine’s sale resulted in: a. a gain of $6,000. b. a gain of $4,000. c. a loss of $6,000. d. a loss of $4,000. Cost 100,000$ Accum. Depr. 46,000 Book value 54,000$ Cash received 60,000 Gain 6,000$ Disposal of Plant and EquipmentDisposal of Plant and Equipment
  33. 33. © The McGraw-Hill Companies, Inc., 2005McGraw-Hill/Irwin 9-33 Disposal of Plant and EquipmentDisposal of Plant and Equipment Prepare the journal entry to record the sale. Prepare the journal entry to record the sale.
  34. 34. © The McGraw-Hill Companies, Inc., 2005McGraw-Hill/Irwin 9-34 Accounting depends on whether assets are similar or dissimilar. Accounting depends on whether assets are similar or dissimilar. Airplane for Airplane Airplane for Airplane Truck for Airplane Truck for Airplane Only situations where cash is paid will be demonstrated. Only situations where cash is paid will be demonstrated. Trading in Used Assets for New Ones Trading in Used Assets for New Ones
  35. 35. © The McGraw-Hill Companies, Inc., 2005McGraw-Hill/Irwin 9-35 Recognize Gains? Recognize Losses? Similar Assets and Cash Paid Yes No Yes Yes Dissimilar Assets Trading in Used Assets for New Ones Trading in Used Assets for New Ones
  36. 36. © The McGraw-Hill Companies, Inc., 2005McGraw-Hill/Irwin 9-36 On May 30, 2005, Essex Company exchanged a used airplane and $35,000 cash for a new airplane. The old airplane originally cost $40,000, had up-to-date accumulated depreciation of $30,000, and a fair value of $4,000. On May 30, 2005, Essex Company exchanged a used airplane and $35,000 cash for a new airplane. The old airplane originally cost $40,000, had up-to-date accumulated depreciation of $30,000, and a fair value of $4,000. SIMILAR Trading in Used Assets for New Ones – Similar Assets Trading in Used Assets for New Ones – Similar Assets
  37. 37. © The McGraw-Hill Companies, Inc., 2005McGraw-Hill/Irwin 9-37 The exchange resulted in a: a. gain of $6,000. b. loss of $6,000. c. loss of $4,000. d. gain of $4,000. The exchange resulted in a: a. gain of $6,000. b. loss of $6,000. c. loss of $4,000. d. gain of $4,000. Cost 40,000$ Accum. Depr. 30,000 Book Value 10,000$ Fair Value 4,000 Loss 6,000$ Prepare a journal entry to record the exchange. Trading in Used Assets for New Ones – Similar Assets Trading in Used Assets for New Ones – Similar Assets
  38. 38. © The McGraw-Hill Companies, Inc., 2005McGraw-Hill/Irwin 9-38 Trading in Used Assets for New Ones – Similar Assets Trading in Used Assets for New Ones – Similar Assets Prepare the journal entry to record the trade. Prepare the journal entry to record the trade.
  39. 39. © The McGraw-Hill Companies, Inc., 2005McGraw-Hill/Irwin 9-39 Noncurrent assets without physical substance. Noncurrent assets without physical substance. Useful life is often difficult to determine. Useful life is often difficult to determine. Usually acquired for operational use. Usually acquired for operational use. Often provide exclusive rights or privileges. Often provide exclusive rights or privileges. Intangible AssetsIntangible Assets CharacteristicsCharacteristics
  40. 40. © The McGraw-Hill Companies, Inc., 2005McGraw-Hill/Irwin 9-40  Patents  Copyrights  Leaseholds  Leasehold Improvements  Goodwill  Trademarks and Trade Names Record at current cash equivalent cost, including purchase price, legal fees, and filing fees. Intangible AssetsIntangible Assets
  41. 41. © The McGraw-Hill Companies, Inc., 2005McGraw-Hill/Irwin 9-41 Amortization is the systematic write-off to expense of the cost of intangible assets over Their useful life or legal life, whichever is shorter. Use the straight-line method to amortize most intangible assets. Amortization is the systematic write-off to expense of the cost of intangible assets over Their useful life or legal life, whichever is shorter. Use the straight-line method to amortize most intangible assets. AmortizationAmortization Date Description Debit Credit Amortization Expense #### Intangible Asset ####
  42. 42. © The McGraw-Hill Companies, Inc., 2005McGraw-Hill/Irwin 9-42 The amount by which the purchase price exceeds the fair market value of net assets acquired. The amount by which the purchase price exceeds the fair market value of net assets acquired. Occurs when one company buys another company. Occurs when one company buys another company. Only purchased goodwill is an intangible asset. Only purchased goodwill is an intangible asset. GoodwillGoodwill Goodwill is NOT amortized. It is tested annually to determine if there has been an impairment loss. Goodwill is NOT amortized. It is tested annually to determine if there has been an impairment loss.
  43. 43. © The McGraw-Hill Companies, Inc., 2005McGraw-Hill/Irwin 9-43 Exclusive right granted by federal government to sell or manufacture an invention. Exclusive right granted by federal government to sell or manufacture an invention. Cost is purchase price plus legal cost to defend. Cost is purchase price plus legal cost to defend. Amortize cost over the shorter of useful life or 20 years. Amortize cost over the shorter of useful life or 20 years. PatentsPatents
  44. 44. © The McGraw-Hill Companies, Inc., 2005McGraw-Hill/Irwin 9-44 A symbol, design, or logo associated with a business. A symbol, design, or logo associated with a business. Purchased trademarks are recorded at cost, and amortized over shorter of legal or economic life, or 40 years. Internally developed trademarks have no recorded asset cost. Trademarks and Trade NamesTrademarks and Trade Names
  45. 45. © The McGraw-Hill Companies, Inc., 2005McGraw-Hill/Irwin 9-45 Legally protected right to sell products or provide services purchased by franchisee from franchisor. Legally protected right to sell products or provide services purchased by franchisee from franchisor. Purchase price is intangible asset which is amortized over the shorter of the protected right or useful life. Purchase price is intangible asset which is amortized over the shorter of the protected right or useful life. FranchisesFranchises
  46. 46. © The McGraw-Hill Companies, Inc., 2005McGraw-Hill/Irwin 9-46 Exclusive right granted by the federal government to protect artistic or intellectual properties. Exclusive right granted by the federal government to protect artistic or intellectual properties. Amortize cost over period benefited. Amortize cost over period benefited. Legal life is life of creator plus 70 years. Legal life is life of creator plus 70 years. CopyrightsCopyrights
  47. 47. © The McGraw-Hill Companies, Inc., 2005McGraw-Hill/Irwin 9-47 The FASB ruled that all R&D expenditures should be charged to expense when incurred. The FASB ruled that all R&D expenditures should be charged to expense when incurred. Research and Development CostsResearch and Development Costs All of these R&D costs will really reduce our net income this year!
  48. 48. © The McGraw-Hill Companies, Inc., 2005McGraw-Hill/Irwin 9-48 Total cost, including exploration and development, is charged to depletion expense over periods benefited. Total cost, including exploration and development, is charged to depletion expense over periods benefited. Examples: oil, coal, goldExamples: oil, coal, gold Extracted from the natural environment and reported at cost less accumulated depletion. Extracted from the natural environment and reported at cost less accumulated depletion. Natural ResourcesNatural Resources
  49. 49. © The McGraw-Hill Companies, Inc., 2005McGraw-Hill/Irwin 9-49 Depletion is calculated using the units-of-production method. Unit depletion rate is calculated as follows: Total Units of Natural Resource Cost – Residual Value Depletion of Natural ResourcesDepletion of Natural Resources
  50. 50. © The McGraw-Hill Companies, Inc., 2005McGraw-Hill/Irwin 9-50 Total depletion cost for a period is: Unit Depletion Rate Number of Units Extracted in Period× Total depletion cost Total depletion cost Inventory for sale Inventory for sale Unsold Inventory Unsold Inventory Cost of goods sold Cost of goods sold Depletion of Natural ResourcesDepletion of Natural Resources
  51. 51. © The McGraw-Hill Companies, Inc., 2005McGraw-Hill/Irwin 9-51 Specialized plant assets may be required to extract the natural resource. These assets should be depreciated over their normal useful lives or over the life of the natural resource, whichever is shorter. Depletion of Natural ResourcesDepletion of Natural Resources
  52. 52. © The McGraw-Hill Companies, Inc., 2005McGraw-Hill/Irwin 9-52 A survey of 600 Publicly Owned Corporations 579 22 6 49 32 9 Straight-line Declining-balance Sum-of-the-years'-digits Accelerated methods (not specified) Units-of-output Other Comparative Use of Depreciation Methods Comparative Use of Depreciation Methods
  53. 53. © The McGraw-Hill Companies, Inc., 2005McGraw-Hill/Irwin 9-53 End of Chapter 9End of Chapter 9

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