Reference no: EM13863800
Which is the proper value to be assigned to certain donated assets? (This is a question for which answers cannot be found in either GASB pronouncements or the text), research is necessary.
A city's road maintenance department received "donations" of two type of assets:
From the couty in which the city is located it received earthmoving equipment. The equipment had cost the county $800,000 when it was acquired five years ealier. Accounted for in a county proprietary fund, its book value, net of accumulated deprecition at the time of donantion, was $500,000. Its fair market value was $530,000.
From the city's own utility fund (a proprietary fund) it received motor vehicles that had coty the city $400,000 when acquired three years earlier. At the time of transfer, the vehicles were recorded on the utility's books at $180,000, net of accumulated depreciation. Their fair market value was #225,000.
Write a 800-1000 word, APA style paper where you answer the following:
At what value should the city record in its government-wide financial statements for: (1) the earth-moving equipment, and (2) the motor vehicles?
Briefly justify your response, commenting on any apparent inconsistencies in the values assigned to each of the two types of assets.
Comment on the significance of the resultant book values for decisions or assessments to be made by statement users.
|
What is the net present value if the cost of capital
: Schaefer Organic Farms purchased a new tractor at a cost of $80,000. Annual operating cash inflows are expected to be $30,000 each year for four years. At the end of the tractor's useful life, the salvage value of the tractor is expected to be $5,000..
|
|
Prepare innovations perpetual inventory record
: Innovation Cycles uses the FIFO inventory method. Innovation started March with 10 bicycles that cost $60 each. On March 16, Innovation bought 20 bicycles at $70 each. On March 31, Innovation sold 25 bicycles. Prepare Innovation’s perpetual inventory..
|
|
What is the impairment loss for the company using US GAAP
: A company owns a piece of equipment with a net cost of $30,000 (cost of $50,000 net of accumulated depreciation of $20,000). There are indicators that this equipment is impaired. The expected net future undiscounted cash flows are $31,000. What is th..
|
|
Minimum difference in depreciation expense
: A company acquires a bulldozer for $500,000. The useful life of the bulldozer is 10 years. The treads with a value of $50,000 will need to be replaced every five years. The blade has a value of $20,000 and needs to be replaced every two years. At the..
|
|
Which is the proper value to be assigned to certain donated
: Which is the proper value to be assigned to certain donated assets?
|
|
Straight-line and double-declining-balance depreciation
: Three different companies each purchased a machine on January 1, 2014, for $84,000. Each machine was expected to last five years or 250,000 hours. Salvage value was estimated to be $4,000. Company A uses straight-line depreciation, company B uses dou..
|
|
Write a paper on note disclosures
: The bonds are backed exclusively by the lease payments from the nursing home.
|
|
Effective interest method-how much interest expense
: On 1/1/2014 the Jackson Co. has a $40,000 debt outstanding which matures on 12/31/16. Interest which is payable on Dec. 31 of each year, was last paid on 12/31/13. Using the effective interest method, how much interest expense is recognized on the ..
|
|
Where you can add value to others or customers
: Topic - Drving for Results, Summarize where you self-handicap yourself and create obstacles in this area. Describe (with great detail) a situation where you can add value to others/customers
|