Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The Case: Britney's Company audit of Property, Plant, and Equipment Britney's Company has prepared the fixed assets and depreciation as shown in Exhibit 1 .

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
The Case: Britney's Company audit of Property, Plant, and Equipment Britney's Company has prepared the fixed assets and depreciation as shown in Exhibit 1 . The following information is available: - The land was purchased eight years ago when Building 1 was erected. The location was then remote, but it is now bordered by a major freeway. The appraised value is $35 million. - Building 1 has an estimated useful life of 35 years and no residual value. - Building 2 was built by a local contractor this year. It also has an estimated useful life of 35 years with no residual value. The company occupied it on May 1 this year. - Equipment A was purchased January 1 six years ago, when the estimated useful life was eight years with no residual value. It was sold on May 1 for $500,000. - The computer system was placed in operation as soon as Equipment A was sold. It is estimated to be in use for six years with no residual value at the end. - The company estimated the useful life of the press at 20 years with no residual value. - Truck 1 was sold during the year for $1,000. - Truck 2 was purchased on July 1 . The company expects to use it for five years and then sell it for - All amortization is calculated by the straight-line method using months of service. $2,000. Exhibit 1 - PPE Continuity Schedule c. For one addition and one disposition create a fictitious supporting document. One of them must have the correct amount and the other one must include a discrepancy. Then perform an audit procedure and document your findings and conclusions on the same working paper prepared in part A. c. Creation of two fictitious documents with appropriate referencing, a clear understanding of the procedure performed and its purpose (which assertion being tested) and a documented conclusion on findings

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Fundamentals Of Multinational Finance

Authors: Michael H. Moffett, Arthur I. Stonehill, David K. Eiteman

3rd Edition

0321541642, 9780321541642

More Books

Students also viewed these Finance questions

Question

6. Yoshi Yamamoto is a patient at St. Lukes Hospital. T F ?

Answered: 1 week ago