How many years are left in the lives of petrobras

Assignment Help Accounting Basics

Reference no: EM132680154

Question 1: How many years are left in the lives of Petrobras' "Equipment and other assets," on average? State clearly any assumptions that you make in arriving at your estimate.

Question 2: Suppose that Petrobras assumes a zero salvage value for their "Equipment and other assets." For each $100 in new asset investments, what is the annual amount of depreciation expense charged to the income statement?

Question 3: Suppose that other leading energy companies charge $12 in depreciation expense for each $100 invested in new equip-ment. Are Petrobras' depreciation policy assumptions materi-ally different from those of their competitors? Support your answer.

Question 4: What line item on Petrobras' income statement is most affected by their depreciation policy? Explain why.

Question 5: Aside from comparing Petrobras' depreciation policy assump-tions to those of their competitors, what other "red flags" might one look for in order to assess whether Petrobras is overly con-servative or overly aggressive in taking depreciation expenses? Is there any evidence of these issues on Petrobras' financial statements?

Reference no: EM132680154

Questions Cloud

Which fundraising goals and organizational goals : Discuss the ways in which fundraising goals and organizational goals affect one another.

Determine the total cost of the new machinery and equipment : Company ABC constructed a new factory, Determine the total cost of the new machinery and equipment (including estimated dismantling and removal).

What is the amount of the gross profit : Problem - During the current year, merchandise is sold for $275,000 cash and $990,000 on account. What is the amount of the gross profit

Effectiveness of policy response : Brief description of the public policy you selected. Then explain two factors that contribute to the effectiveness or ineffectiveness of the public policy.

How many years are left in the lives of petrobras : How many years are left in the lives of Petrobras' "Equipment and other assets," on average? State clearly any assumptions that you make in arriving

How the public policy issue impacts social change : Explain how the public policy issue impacts social change. Be specific and use examples to illustrate your explanation.

What is the character of rocky and bullwinkle loss : What is the character of Rocky's and Bullwinkle's loss? Under what IRC Code Section? What year(s) may R&B take such deductions?

What accounts would be debited and credited : What accounts would be debited and credited to record the adjustment for the inventory shrinkage at the end of the accounting period

Four general principles of effective intervention : There are four general principles of effective intervention that have become organizing concepts of community corrections.

User Account

All Pages