Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. subject financial statement analysis act 450 ques

subject financial statement analysis Act 450 QUESTION 5-(20 pts) Below is the cost and...

50.1K

Verified Solution

Question

Accounting

image

subject financial statement analysis Act 450

QUESTION 5-(20 pts) Below is the cost and accumulated depreciation information for the only building of Company A that was purchased on January 1, 2019. In the end of 2019, company decided to use straight line depreciation, but changed the method and started to use double declining method at the end of 2020. 31 Dec 2020 31 Dec 2019 Building 100,000 100,000 (-) Accumulated Depreciation (43,000) (5,000) 57,000 95,000 Answer the following questions. a) What is the useful life of the building? Show your calculation. (5 pts) b) Why would company make this change? (7.5 pts, 75 words) c) If you were an analyst, before starting financial analysis, what adjustments would you like to make on 31 Dec 2020 Balance Sheet and Income Statement of Company A in the context of accounting analysis. Support your comments with calculations. (7.5 pts) - Provide two of the possible adjustments, and tell the names of the accounts, and indicate the amounts you like to adjust

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students