Solution Manual for Intermediate Accounting,16th edition by Donald E. Kieso

Solution Manual for Intermediate Accounting,16th edition by Donald E. Kieso

CHAPTER 10

Acquisition and Disposition
of Property, Plant, and Equipment

ASSIGNMENT CLASSIFICATION TABLE (BY TOPIC)

Topics
Questions Brief Exercises
Exercises
Problems Concepts for Analysis
1. Valuation and classification of land, buildings, and equipment. 1, 2, 3, 4,
6, 7, 13, 21 1 1, 2, 3, 4,
5, 13 1, 2, 3, 5 1, 5, 6
2. Self-constructed assets, capitalization of overhead. 5, 8, 20, 21 4, 6, 12, 16 2
3. Capitalization of interest. 6, 8, 9, 10, 11, 13, 21 2, 3, 4 5, 7, 8, 9, 10, 16 5, 6, 7 3
4. Exchanges of assets. 12, 16, 17 8, 9, 10, 11, 12 11, 16, 17, 18, 19, 20 4, 8, 9, 10, 11 4
5. Lump-sum purchases, issuance of stock, deferred-payment contracts. 12, 13, 14, 15 5, 6, 7 3, 6, 11, 12, 13, 14,
15, 16 2, 11
6. Costs subsequent to acquisition. 18, 19 13 21, 22, 23
7. Alternative valuations. 22 12 3
8. Disposition of assets. 23 14, 15 24, 25 4 1

ASSIGNMENT CLASSIFICATION TABLE (BY LEARNING OBJECTIVE)

Learning Objectives Questions
Brief Exercises
Exercises Problems Concepts for Analysis
1. Understand property, plant, and equipment and its related costs. 1, 2, 3, 4, 6, 7, 21 1 1, 2, 3, 4, 5, 11, 12, 13 1, 2, 3, 4,
5, 6, 11 1, 5, 6
2. Describe the accounting problems associated with self-constructed assets. 5, 8, 20, 21 4, 6, 12 3
3. Describe the accounting problems associated with interest capitalization. 8, 9, 10, 11, 13, 21 2, 3, 4 5, 6, 7, 8,
9, 10 5, 6, 7
4. Understand accounting issues related to acquiring and valuing plant assets. 7, 12, 13, 14, 15, 16, 17, 20, 22 5, 6, 7, 8, 9, 10, 11, 12 11, 12, 13, 14, 15, 16, 17, 18, 19, 20 3, 4, 8, 9,
10, 11
5. Describe the accounting treatment for costs subsequent to acquisition. 18, 19 13 21, 22, 23
6. Describe the accounting treatment for the disposal of property, plant, and equipment. 23 14, 15 24, 25 2, 4

ASSIGNMENT CHARACTERISTICS TABLE

Item
Description Level of Difficulty Time
(minutes)
E10-1 Acquisition costs of realty. Moderate 15–20
E10-2 Acquisition costs of realty. Simple 10–15
E10-3 Acquisition costs of trucks. Simple 10–15
E10-4 Purchase and self-constructed cost of assets. Moderate 20–25
E10-5 Treatment of various costs. Moderate 30–40
E10-6 Correction of improper cost entries. Moderate 15–20
E10-7 Capitalization of interest. Moderate 20–25
E10-8 Capitalization of interest. Moderate 20–25
E10-9 Capitalization of interest. Moderate 20–25
E10-10 Capitalization of interest. Moderate 20–25
E10-11 Entries for equipment acquisitions. Simple 10–15
E10-12 Entries for asset acquisition, including self-construction. Simple 15–20
E10-13 Entries for acquisition of assets. Simple 20–25
E10-14 Purchase of equipment with zero-interest-bearing debt. Moderate 15–20
E10-15 Purchase of computer with zero-interest-bearing debt. Moderate 15–20
E10-16 Asset acquisition. Moderate 25–35
E10-17 Nonmonetary exchange. Simple 10–15
E10-18 Nonmonetary exchange. Moderate 20–25
E10-19 Nonmonetary exchange. Moderate 15–20
E10-20 Nonmonetary exchange. Moderate 15–20
E10-21 Analysis of subsequent expenditures. Moderate 20–25
E10-22 Analysis of subsequent expenditures. Simple 15–20
E10-23 Analysis of subsequent expenditures. Simple 10–15
E10-24 Entries for disposition of assets. Moderate 20–25
E10-25 Disposition of assets. Simple 15–20

P10-1 Classification of acquisition and other asset costs. Moderate 35–40
P10-2 Classification of acquisition costs. Moderate 40–55
P10-3 Classification of land and building costs. Moderate 35–45
P10-4 Dispositions, including condemnation, demolition, and trade-in. Moderate 35–40
P10-5 Classification of costs and interest capitalization. Moderate 20–30
P10-6 Interest during construction. Moderate 25–35
P10-7 Capitalization of interest. Moderate 20–30
P10-8 Nonmonetary exchanges. Moderate 35–45
P10-9 Nonmonetary exchanges. Moderate 30–40
P10-10 Nonmonetary exchanges. Moderate 30–40
P10-11 Purchases by deferred payment, lump-sum, and nonmonetary exchanges. Moderate 35–45