ACC113 Discussion Unit 8

Discussion Unit 8

· This unit focuses on classifying fixed assets and the various methods of depreciation as well as the accounting needed for the disposal of fixed assets. You will discuss the classification of inventories and the accounting for intangible assets as well as reporting depreciation, fixed assets, and intangible assets on the financial statements.

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· Topic 1: In a recent newspaper release, the president of Magnusson Company asserted that something has to be done about depreciation. The president said, “Depreciation does not come close to accumulating the cash needed to replace the asset at the end of its useful life.” What is your response to the president?