For file 8.10 please describe the similarity between the reporting for the two classifications. Also describe the differences in reporting between the two classifications.

For 8.15 answer questions a through g.

Three Chemical Companies Seletted Financial Statement Data on Depreciable Assets [amounts in millions} [Problem 8.15} Deprecldale assels atcosl: Beningofyear End ofyear 7'1? mlamd depreclatlnrr. Bej'lnhg of year 584 End of year 1,343 Net Income 33 26? 55 Depreciation expense 2? 323 1'2 Deferred tax llahlllty Iatlng to depledable assels: Begi'lnhg of year 13 26: 33 End of year 9 156 96 hcon'le lax rate 35% 35% 35% Depredatlon melhod nr nancld reporthg Straightline Shamline Sualy'IlE'Ie Depredatlnn med-nod for tax reportlng Accelerated neceleraned Accelerated mwmmmkfummdmmmznmmnmCmmm1Hh|escal Yea-Wm 31,2}DskandhCa-pmmm Form 1n-KfordrthcalYeera-ied Demba-ztm. 1}. Compute the amount each oorrpa'ry mdd report for property. plant, and equ'pment {net} at [he end 11' die year if it had used accelerated {tax repung] depredann instead of straightline depreciaon. f. What radars night explin the difference in average total life ofthe assels of NewMarloei Corpmaon and Din Corpnmon relative to le asset oanma-rln Company? 5. What factors might explah the older avenge age for depreciable assets of NewMarlaei Corpoialion aid Din Corpomon relative to Manama Cu'npany? 3.10 Accounting for AvailabhhrSalc and Trading Marla-tabl- qulity SICIII'iIiIS. Films invest 'n rnarketae securities for a variety of reasons. One of the most common reasons is to temporain irnrest excess cash. Securities that qualify for the auailaHefnr-sale report'ng classication are accounted for di'eren'liy from those that qualify fer the tradhg reparting classication. Describe the sinilarity between the reporting for the two classications. Also describe the diFferences in reporting between the two dassications. Problems and Cases 8.15 Analyzing Disclosures Regarding Fixed Assets. ambit I124 presents selected nmcid statement data fer tl'l'ee cherriml cornparl'e: Monsanto Company, Olin Cm-puratinn. and HIwMarlwt Corporation. {NewMarket was farmed from arnergerdEtfrleorpomdonmdAanCl'Iernical Corpomtinn.) REQUIRED 3. Compute the average total depreciahle life efassels it use fur ear]! lm. h. Compute theaverageage todated'depreciable assets i1 useforeachrmattheendof the year. c. Cunputeleannurtnfdep'edatinn enpenserecognieed fortaxpurpnfnread'lnn for the year un'ng ue amount of the defened taxes liabiity related to depreciation tining differences. II. Compute the amount pf net income for the year for each lm assuming that\" depreciatiun expense for fnancial reporting equds the amuurt corrputed in Requirement 1: for tax reporting. 8.10 similarities between reporting for available for sale investments and held for trading marketable equity securities is that bo Interest or dividend income in both Available for sale investments and trading marketable securities are reported in income differences changes in fair value of available for sales investments are recognized directly in the shareholder's equity while changes in tradinding marketable securities can only be recognized as current asset in balance sheet while available for sale securities unrealised gain or losses in available for sale securities are reported in other comprehensive income and not in earnings un 8.15 a Average depreciable life = Gross asset value / Depreciaton expense. new market 28.77778 years monsanto 14.03659 years ohlin 25.36111 years b Average age = accumulated depreciation / current depreciation expense new market 22.62963 years monsanto 7.67378 years olin 18.72222 years c new market monsanto olin 15.57143 million 296.5714 million 109.1429 million d new market monsanto ohlin 40.42857 million 287.4286 million 30.85714 million e new market monsanto olin 761.4286 million 4307.429 million 1716.857 million f Monsanto might have more older assets than both olin and new market as it seems to be larger than both ohlin Composition of fixed assets in monsanto might reflect more equipments or assets with less useful life than in Ne g Monsanto is a larger company than both olin and newmarket corporation and therefore it has aging assets . Composition of fixed assets in monsanto might reflect more equipments or assets with less useful life than in Ne equity securities is that both are reported at fair value in the balance sheet ties are reported in income statement. s equity while changes in fair value of held for trading marketable equity securities are reconignised in profit and loss account. vailable for sale securities can be either be classified as current or non current depending on when they will be sold. me and not in earnings until they are realised while unrealised gain or losses in trading securities are reported in earnings. be larger than both ohlin and new market in terms of revenues and assets. h less useful life than in Newmarket and Olin which might consist of assets with much longer useful like buildings,plant and property. re it has aging assets . h less useful life than in Newmarket and Olin which might consist of assets with much longer useful like buildings,plant and property. and loss account. in earnings. ngs,plant and property. ngs,plant and property. 8.10 similarities between reporting for available for sale investments and held for trading marketable equity securities is that bo Interest or dividend income in both Available for sale investments and trading marketable securities are reported in income differences changes in fair value of available for sales investments are recognized directly in the shareholder's equity while changes in tradinding marketable securities can only be recognized as current asset in balance sheet while available for sale securities unrealised gain or losses in available for sale securities are reported in other comprehensive income and not in earnings un 8.15 a Average depreciable life = Gross asset value / Depreciaton expense. new market 28.77778 years monsanto 14.03659 years ohlin 25.36111 years b Average age = accumulated depreciation / current depreciation expense new market 22.62963 years monsanto 7.67378 years olin 18.72222 years c new market monsanto olin 15.57143 million 296.5714 million 109.1429 million d new market monsanto ohlin 40.42857 million 287.4286 million 30.85714 million e new market monsanto olin 761.4286 million 4307.429 million 1716.857 million f Monsanto might have more older assets than both olin and new market as it seems to be larger than both ohlin Composition of fixed assets in monsanto might reflect more equipments or assets with less useful life than in Ne g Monsanto is a larger company than both olin and newmarket corporation and therefore it has aging assets . Composition of fixed assets in monsanto might reflect more equipments or assets with less useful life than in Ne equity securities is that both are reported at fair value in the balance sheet ties are reported in income statement. s equity while changes in fair value of held for trading marketable equity securities are reconignised in profit and loss account. vailable for sale securities can be either be classified as current or non current depending on when they will be sold. me and not in earnings until they are realised while unrealised gain or losses in trading securities are reported in earnings. be larger than both ohlin and new market in terms of revenues and assets. h less useful life than in Newmarket and Olin which might consist of assets with much longer useful like buildings,plant and property. re it has aging assets . h less useful life than in Newmarket and Olin which might consist of assets with much longer useful like buildings,plant and property. and loss account. in earnings. ngs,plant and property. ngs,plant and property