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On March 30, 2011, Calvin Exploration purchased a drilling machine for $840,000. The estimated useful life of the machine is 10 years, and no residual value is anticipated.
An important component of the machine is the drill housing component that will need to be replaced in five years. The $200,000 cost of the drill housing component is included in the $840,000 cost of the machine. Calvin uses the straight-line depreciation
Required:
a. Calculate depreciation on the drilling machine for 2011 and 2012 applying the typical U.S. GAAP treatment.
b. Repeat requirement 1 applying IFRS.
Condelezza Co. manufactures two products, A and B, in two production departments, Assembly and Finishing. Condelezza Co. expects to produce 10,000 units of Product A and 20,000 units of Product B in the coming year.
Describe the rationale for the nature of the audit report (qualified or unqualified) rendered
Determine Ending Accounts Receivable your accounts receivable clerk, Mary Herman, to whom you pay a salary of $1,500 per month, has just purchased a new Buick.
1. the alphonse company assign fixed overhead costs by machine hours and variable overhead costs by direct labor hours.
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