What recommendation would make if large depreciation possibl

Assignment Help Accounting Standards

Reference no: EM13215549

Assume that a company buys land with a building on it for $1,500,000. At the time of purchase the company planned to tear the old building down and build a new building. The cost to tear down and dispose of the old building was $150,000 and they sold some material for $25,000. The cost to build the new building was $5,500,000 and the cost to grade the lot and landscape was $600,000. It is expected the life of the building is 25-40 years with a salvage value of $2,000,000 to $3,000,000.
Discussion Questions:

If management desired the smallest depreciation possible, what recommendation would you make? Support your recommendation by calculations. Why might the company want to do this?
If management desired the largest depreciation possible what recommendation would you make? Support your recommendation by calculations. Why might the company want to do this?

Reference no: EM13215549

Questions Cloud

Corporate travel management department : Discuss the advantages associated with having a corporate travel management department or a corporate travel manager.

Calculate the total pressure : A 2.63 L flask is filled with carbon monoxide at 27°c until the pressure is 6.72 ATM. Calculate the total pressure after 2.89 moles of carbon dioxide has been added to the flask.

Advantages and disadvantages associated with booking a trip : List some advantages and disadvantages associated with booking a trip yourself as well as using a travel agent. What do you prefer?

Construct a neat and compact table : Construct a neat and compact table, including title and footnotes if required, to summarise the following information taken from rough notes

What recommendation would make if large depreciation possibl : Assume that a company buys land with a building on it for $1,500,000. At the time of purchase the company planned to tear the old building down and build a new building. The cost to tear down and dispose of the old building was $150,000.

Aspects of control work together in successful organizations : Discuss to what extent these two aspects of control work together in successful organizations. Be sure to give an example or two to support the position you take on this.

Sketch a series of titration curves for the titration : Sketch a series of titration curves for the titration of a strong acid with a strong base where the concentration of the acid is 10-1, 10-2, and 10-3 mol dm-3 respectively. Explain why the choice of indicators is restricted at different acid conce..

Explain organizational level needs assessment : Explain organizational level needs assessment and explain person analysis from a needs assessment perspective.

What actions and characteristics made : Discuss what actions and characteristics made this person an "icon." What did the person do to make his followers successful? And what business management related lessons can be learned from this leader.

User Account

All Pages