Indicate where the following items would ordinarily appear on the financial statements of Allepo, Inc. for the
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(a) The service life of certain equipment was changed from 8 to 5 years. If a 5-year life had been used previously, additional depreciation of $425,000 would have been charged.
(b) In 2008 a flood destroyed a warehouse that had a book value of $1,600,000. Floods are rare in this locality.
(c) In 2008 the company wrote off $1,000,000 of inventory that was considered obsolete.
(d) An income tax refund related to the 2005 tax year was received.
(e) In 2005, a supply warehouse with an expected useful life of 7 years was erroneously expensed.
(f) Allepo, Inc. changed from weighted-average to FIFO inventory pricing.
Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...
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Related Book For
Intermediate Accounting principles and analysis
ISBN: 978-0471737933
2nd Edition
Authors: Terry d. Warfield, jerry j. weygandt, Donald e. kieso
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