Solution Manual For Accounting Principles, Volume 2, 10th Canadian Edition Jerry J. Weygandt, Paul D. Kimmel, Jill E. Mitchell, Valerie Warren, Lori Novak Chapter 9-18
CHAPTER 9 Long-Lived Assets
Learning Objectives 1. Calculate the cost of property, plant, and equipment. 2. Apply depreciation methods to property, plant, and equipment. 3. Explain the factors that cause changes in periodic depreciation and calculate revised depreciation for property, plant, and equipment. 4. Demonstrate how to account for property, plant, and equipment disposals. 5. Record natural resource transactions and compute depletion. 6. Identify the basic accounting issues for intangible assets and goodwill. 7. Illustrate the reporting and analysis of long-lived assets.
Summary of Questions by Learning Objectives and Bloom‘s Taxonomy Item
LO
BT Item
LO
1. 2. 3. 4. 5.
1 1 1 1 1
K K C C C
6. 7. 8. 9. 10.
2 2 2 2,3 3
1. 2. 3. 4. 5.
1 1 1 1 2
AP 6. AP 7. K 8. AP 9. AP 10.
2 2 2 2 2
1. 2. 3. 4.
1 1,2 1,2 2
AP AP C AP
5. 6. 7. 8
2 2 2 3
1. 2. 3.
1 1,2 1,2
AP AP AP
4. 5. 6.
1,3 2 3
BT Item LO BT Item LO BT Item LO Questions C 11. 3 C 16. 4 K 21. 6 K 12. 3 K 17. 4 C 22. 6 C 13. 3 C 18. 5 K 23. 7 K 14. 4 C 19. 5 C 24. 7 C 15. 4 C 20. 6 C Brief Exercises AP 11. 3 AP 16. 5 AP 21. 7 AP 12. 3 AP 17. 5,7 AP AP 13. 4 AP 18. 6 AP AP 14. 4 AP 19. 6,7 AP AP 15. 4 AP 20 7 AP Exercises AP 9. 3 AP 13. 5 AP AP 10. 3 AP 14. 1,2,6 AP AP 11. 4 AP 15. 6 AP AP 12. 4 AP 16. 6 AP Problems AP 7. 1,2,3,4 AP 10. 2,4,7 AP AP 8. 2,4 AP 11. 6 AP AP 9. 2,4 AP 12. 6,7 AP
17 2,7 18. 7
BT
Difficulty:
Learning objective Bloom's Taxonomy K Knowledge C Comprehension AP Application AN Analysis S Synthesis E Evaluation Level of difficulty
C C K C
AN
AP AN
13. 3,5,7 AP 14. 7 AN
Legend: The following abbreviations will appear throughout the solutions manual file. LO
BT
Time: AACSB
CPA CM
S Simple M Moderate C Complex Estimated time to complete in minutes Association to Advance Collegiate Schools of Business Communication Communication Ethics Ethics Analytic Analytic Tech. Technology Diversity Diversity Reflec. Thinking Reflective Thinking CPA Canada Competency Map Ethics Professional and Ethical Behaviour PS and DM Problem-Solving and Decision-Making Comm. Communication Self-Mgt. Self-Management Team & Lead Teamwork and Leadership Reporting Financial Reporting Stat. & Gov. Strategy and Governance Mgt. Accounting Management Accounting Audit Audit and Assurance Finance Finance Tax Taxation
ASSIGNMENT CLASSIFICATION TABLE Learning Objectives
Brief Problems Problems Questions Exercises Exercises Set A Set B
1. Calculate the cost of property, plant, and equipment.
1, 2, 3, 4, 1, 2, 3, 4 5
2. Apply depreciation methods to property, plant, and equipment.
6, 7, 8, 9, 5, 6, 7, 8, 2, 3, 4, 5, 2, 3, 5, 7, 2, 3, 5, 7, 9, 10 6, 7, 14, 8, 9, 10 8, 9, 10, 17 13
3. Explain the factors that cause 9, 10, 11, 11, 12 changes in periodic 12, 13, depreciation and calculate revised depreciation for property, plant, and equipment.
1, 2, 3, 12 1, 2, 3, 4, 1, 2, 3, 4, 7 7
8, 9, 10
4, 6, 7, 13 4, 6, 7
4. Demonstrate how to account 14, 15, for property, plant, and 16, 17, equipment disposals. 5. Record natural resource transactions and calculate depletion.
13, 14, 15 11, 12
18, 19, 20 16, 17
13
6. Identify the basic accounting 21, 22 issues for intangible assets and goodwill.
18, 19
7. Illustrate the reporting and 23, 24 analysis of long-lived assets.
17, 19, 20, 17, 18 21
7, 8, 9, 10
7, 8, 9, 10
13
13
14, 15, 16 11, 12
10, 12, 13, 14
11, 12
10, 12, 13, 14
ASSIGNMENT CHARACTERISTICS TABLE Problem Number
Description
Difficulty Time Level Allotted (min.)
1A
Record property transactions.
Simple
20-30
2A
Allocate cost and calculate partial period depreciation.
Moderate
20-30
3A
Determine cost; calculate and compare depreciation under different methods.
Moderate
30-40
4A
Account for operating and capital expenditures and asset impairments.
Moderate
20-30
5A
Calculate and compare depreciation using three methods.
Moderate
30-40
6A
Record impairment and calculate revised depreciation.
Moderate
20-30
7A
Record acquisition, depreciation, impairment, and disposal of Moderate land and building.
25-35
8A
Calculate and compare depreciation and gain or loss on disposal under three methods of depreciation.
Moderate
30-40
9A
Record acquisition, depreciation, and disposal of equipment.
Moderate
30-40
10A
Record property, plant, and equipment transactions; prepare partial financial statements.
Complex
40-50
11A
Correct errors in recording intangible asset transactions.
Complex
15-20
12A
Record intangible asset transactions; prepare partial balance sheet.
Moderate
30-40
Problem Number
Description
Difficulty Time Level Allotted (min.)
13A
Record natural resource transactions; prepare partial financial Moderate statements.
25-30
14A
Calculate ratios and comment.
Moderate
15-25
1B
Record property transactions.
Simple
20-30
2B
Allocate cost and calculate partial period depreciation.
Moderate
20-30
3B
Determine cost; calculate and compare depreciation under different methods.
Moderate
30-40
4B
Account for operating and capital expenditures and asset impairments.
Moderate
20-30
5B
Calculate and compare depreciation using three methods.
Moderate
30-40
6B
Record impairment and calculate revised depreciation.
Moderate
20-30
ASSIGNMENT CHARACTERISTICS TABLE (Continued)
Problem Number
Description
Difficulty Time Level Allotted (min.)
7B
Record acquisition, depreciation, impairment, and disposal of Moderate equipment.
25-35
8B
Calculate and compare depreciation and gain or loss on disposal under three methods of depreciation.
Moderate
30-40
9B
Record acquisition, depreciation, and disposal of furniture.
Moderate
30-40
10B
Record property, plant, and equipment transactions; prepare partial financial statements.
Complex
40-50
11B
Correct errors in recording intangible asset transactions.
Complex
15-20
12B
Record intangible asset transactions; prepare partial balance sheet.
Moderate
30-40
13B
Record equipment, note payable, and natural resource transactions; prepare partial financial statements.
Moderate
25-30
14B
Calculate ratios and comment.
Moderate
15-25