User Account

All Pages

What is the amount of depreciation recorded by greenwood

Assignment Help Financial Accounting
Reference no: EM132618451

On 1 July 2015, Greenwood Construction Ltd paid $270,000 for an asphalt paving machine. On this date, it was estimated that the asphalt paving machine had a useful life of twelve years and a residual value of $24,000. Greenwood Construction Ltd uses the straight-line method of depreciation for all items of property, plant and equipment.

In December 2019, management of Greenwood Construction Ltd became concerned about the performance of the asphalt paving machine due to increased downtime caused by repeated breakdowns. In February 2020, management of Greenwood Construction Ltd decided to review the useful life and residual value of the asphalt paving machine. Greenwood Construction Ltd engaged the services of a technical consultant who evaluated the asphalt paving machine and prepared a report which advised that, as at 30 June 2020, the remaining useful life of the asphalt paver was three years (that is, eight years in total) and its residual value was $8,000.

Management of Greenwood Construction Ltd accepts the advice of the technical consultant and changes the useful life and residual value of the asphalt paving machine.

Required

Problem (a) Explain how the change in (a) useful life and (b) residual value should be accounted for by Greenwood Construction Ltd in accordance with AASB 108 Accounting Policies, Changes in Accounting Estimates and Errors.

Problem (b) What is the amount of depreciation recorded by Greenwood Construction Ltd in relation to the asphalt paving machine for the years ending:

  • 30 June 2019,
  • 30 June 2020, and
  • 30 June 2021?

Reference no: EM132618451

Questions Cloud

Control systems and quality management : Define Total Quality Management. Provide an example of how Total Quality Management (TQM) is used in business organizations.
What are the terminal cash flows in year six : Six years ago, Today, the book value of the machinery is $14,157. The tax rate is 34 percent. What are the terminal cash flows in Year 6?
Calculate the ending total assets of landers : The beginning total assets were? $8,300,000. The asset turnover ratio was 1.6 times. Calculate the ending total assets of Landers.
Calculate the intrinsic price of the stock for the year : The last dividend the company distributes is $ 2. If the required rate of return is estimated at 9%. Calculate the intrinsic price of the stock for the year
What is the amount of depreciation recorded by greenwood : What is the amount of depreciation recorded by Greenwood Construction Ltd in relation to the asphalt paving machine for the years ending
What adjustment be made to the consolidated shareholders : What adjustment should be made to the consolidated shareholders' equity to reflect Peter's additional purchase of shares
Analyze how freud ideas explain steve behavior : Personality theories are not meant to be simply studied-they are developed to help understand people. Your work in this course is designed to give.
Calculate the fringe benefits tax liability for perisher : Calculate the Fringe Benefits Tax Liability for Perisher, please have a look at the matrix below on how to answer the question
What is the amount of the first part of the investment : The interest from the first investment was 2 times the interest from the second. Find the amounts of the three parts of the investment

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd