Alternate Exercises and Problems 10–1
Chapter 10 Property, Plant, and Equipment and
Intangible Assets: Acquisition and Disposition
EXERCISES
Exercise 10-1
Calculation of goodwill:
Consideration exchanged $25,000,000
Less fair value of net assets:
Book value of net assets $16,250,000
Plus: Fair value in excess of book value:
Exercise 10-2
Requirement 1
Machine ($25,000 cash + $43,661 present value of note) ……… 68,661
Present value of note payment:
Requirement 2
Alternate Exercises and Problems 10–3
Exercise 10-3
Truck – new ($800 + 14,000) ………………………………………. 14,800
Exercise 10-4
Truck – new ($1,500 + 14,000) …………………………………….. 15,500
10–4 Intermediate Accounting, 8/e
Exercise 10-5
Research and development expense:
Salaries and wages for lab research $ 350,000
Exercise 10-6
Requirement 1
($ in millions)
Requirement 2
(1) Percentage-of–revenue method:
(2) Straight-line method:
PROBLEMS
Alternate Exercises and Problems 10–5
Problem 10-1
Brown:
Cash …………………………………………………………………….. 15,000
Filzinger:
New equipment ($110,000 + 15,000) …………………………... 125,000
10–6 Intermediate Accounting, 8/e
Problem 10-2
Requirement 1 2016:
Expenditures for 2016:
January 1, 2016 $500,000 x 12/12 = $500,000
Interest capitalized:
2017:
January 1, 2017
($2,500,000 + 145,000) $2,645,000 x 6/6 = $2,645,000
Interest capitalized:
$2,000,000 x 10.0% x 6/12 = $100,000
* Weighted-average rate of all other debt:
$5,000,000 x 8% = $400,000 $580,000
Alternate Exercises and Problems 10–7
Problem 10-2 (concluded)
Requirement 2
Accumulated expenditures 6/30/17,
Requirement 3 2016:
$2,000,000 x 10% = $ 200,000