Learning Objectives

Learning Objectives

By the end of this module, you will be able to:

Calculate net book value for determining impacts on the company

Calculate depreciation using various time-based and activity-based

methods

Describe how to account for disposal of property, plant, and

equipment

Describe depreciation for income tax purposes and how it differs

from depreciation for financial reporting purposes

Module at a Glance

This is the recommended plan for completing the reading assignments and

activities within the module. Additional information can be found in the

module Reading and Resources section and in the task list.

Read the required resources.

Complete and submit Milestone One.

Complete and submit the Chapter 11 homework assignment.

Reading and Resources

Textbook: Intermediate Accounting: Reporting and Analysis, Chapter 11

As you read, consider the following:

Which depreciation method and life makes the most sense for the

company?

How do companies determine when an asset is impaired?

What is the correct way to record a disposal?

Click the Intermediate Accounting eText link in this module to access this

resource.

Additional Support (Optional)

This video shows different methods a company can use to calculate the

depreciation of fixed assets. Consider the following as you watch:

How will you calculate the depreciable cost of an asset?

What is the useful life of an asset, and how is it determined?

What are the methods you can use to calculate depreciation?