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Book Cover
Financial and Managerial Accounting: The Basis for Business Decisions, 12/e
Jan R. Williams, University of Tennessee
Susan F. Haka, Michigan State University
Mark S. Bettner, Bucknell University
Robert F. Meigs

Plant Assets and Depreciation

Tootsie Roll Exercises

 

TOOTSIE ROLL EXERCISE

EXERCISE 9.14

Using an Annual Report to Determine Depreciation Methods Used

LO 1, 3

 

The annual report of Tootsie Roll Industries, Inc. appears in Appendix A at the end of this textbook. Use this annual report to answer the following questions:

  1. What method of computing depreciation expense does the company use for financial reporting purposes?
  2. What method of computing depreciation expense does the company use for federal income tax purposes?
  3. The company's income statement reports amortization of intangible assets. What types of intangible assets would you guess require amortization?