Show the treatment of the lot in the income statement

Assignment Help Financial Accounting

Reference no: EM13182726

AS Industries has on January 1^st20x1 purchased a new production facility - a factory building. You are given the following information about the building:

Cost - 10 million NOK
Economic life - 10 years
Depreciation - Linear
Residual value - 0

During fall 20x5 the company made some improvements of the factory premises. The expenses were amounted to 5,000,000 NOK. The work was carried out and the new premises were adopted 01.01.20x6. The improvements did not affect the building's total lifetime.

Question a:

Calculate the following for the years 20x1 - 20x10:

- Balance per 1 January and 31 December

- Annual depreciation

Question b:

How is the solution if the expenditure extends the lifetime of the building for three years?

In 20x1 AS Otta bought a lot for 3 million NOK. The lot was designed for use in the business and should be considered by the Accounting Act general principles. You are given the following information about the value development of the loy:

Value lot:

01.01.20x1 (buy): 3.0 million NOK

31.12.20x2: 1.8 million NOK

31.12.20x5: 2.6 million NOK

31.12.20x6: 3.5 million NOK

The value decrease in 20x2 were considered permanent.

Question:

Show the treatment of the lot in the income statement (result accounting) and balance sheet for the period 20x1 - 20X6.

Reference no: EM13182726

Questions Cloud

Explain if do you make rational or irrational decisions : This assignment is a reflective paper based on the discussion of the text material on irrational choices and the three common mistakes that people make. Do you make rational or irrational decisions? Consider some of your spending decisions and giv..

How reported accounting numbers might affect : Explain how reported accounting numbers might affect an individual's perceptions and actions. Cite two examples.

State isolated in a gas containment bulb on a manifold : The volume of the bulb was 1.524 liters. The temperature was 28.40 C, and the manifold pressure was 637.6 torr. What volume, in liters, would this gas sample occupy at STP?

State the transversality conditions : State thes implified version of the problem in which the household chooses tomorrow's capital stock instead of today's investment .2 Given the Setup in 1.1, state the current value Lagrangian. .3 State the household's first-order conditions for cons..

Show the treatment of the lot in the income statement : Show the treatment of the lot in the income statement (result accounting) and balance sheet for the period 20x1 - 20X6.

State how much heat in kilojoules is evolved or absorbed : How much heat in kilojoules is evolved or absorbed in the reaction of 244.0g of calcium oxide with enough carbon to produce calcium carbide?

Explain the primary ways in which finance leases : Evaluate whether ABC Wines should go ahead with the installation of the new irrigation system and whether they should use the purchase or the lease option.

Acid-catalyzed dehydration of cyclobutylmethanol proceeds : Acid-catalyzed dehydration of cyclobutylmethanol proceeds via an E1 mechanism and gives two alkenes

Stimulate investment but leave ad unchanged : The economy has no unemployment and no inflation, but the government has determined that economic growth is too low and that the cause of this is a low level of investment. Using IS/LM, craft a set of policies that will stimulate investment BUT l..

User Account

All Pages