Professional Documents
Culture Documents
Disposition of PPE
Cash $1,000
A/D 3,700
*Loss on disposal 5,300
Machinery $10,000
Disclosure:
FAS34 requires that:
a. For an accounting period in which no interest
cost is capitalized, the amount of interest cost
incurred and charged to expense during the
period.
b. For an accounting period in which some
interest cost is capitalized, the total amount of
interest cost incurred during the period and the
amount thereof that has been capitalized.
Yes or no determination.
Situation 1:
The fair value of the land is $80,000.
Situation 2:
The fair value of the land is $140,000.
Situation 3:
The fair value of the new land is $120,000.
Situation 4:
The fair value of the new land is $50,000. Recognize the loss
immediately.
Situation 5:
The fair value of the new land is $120,000.
Situation 6:
The fair value of the new land is $50,000. Recognize the loss
immediately.