{"id":775,"date":"2015-05-13T17:06:38","date_gmt":"2015-05-13T17:06:38","guid":{"rendered":"https:\/\/courses.candelalearning.com\/finacct2x10xmaster\/?post_type=chapter&p=775"},"modified":"2015-05-27T15:19:45","modified_gmt":"2015-05-27T15:19:45","slug":"computing-book-value","status":"publish","type":"chapter","link":"https:\/\/courses.lumenlearning.com\/clinton-finaccounting\/chapter\/computing-book-value\/","title":{"raw":"Computing Book value ","rendered":"Computing Book value"},"content":{"raw":"Book value of an asset (or net book value) is calculated by taking the original cost of the asset - accumulated depreciation on the asset.\r\n\r\nTo make this more real, let's look at an actual company:\r\n

What does Walt Disney\u2019s Form 10-K communicate about its\u00a0PP&E?<\/h1>\r\n

\u00a0<\/span><\/p>\r\n\r\n

\r\n\r\n\"Picture<\/a>In February 2015, The Walt Disney Company (DIS<\/a>) unveiled its new interactive queue for one of its oldest attractions at its Magic Kingdom Park (Walt Disney World) in Orlando, Peter Pan\u2019s Flight (see video here<\/a>.) As guests wait in line, they enter into the Darling\u2019s foyer. From the foyer, guests head into the children\u2019s nursery. Tinker Bell is seemingly in the room and guests can interact with Tinker Bell and other items in the room.\u00a0 There is a shadow interaction feature created by Disney developers (\u201cImagineering employees\u201d) that allows guests to \u201cplay\u201d with shadows.\r\n\r\nWalt Disney invests a lot of money into its parks, including upgrades as described above.\u00a0 Under SEC Filings, find the 2014 10K report and see two excerpts from Walt Disney\u2019s 2014 Form 10-K: a partial balance sheet (page 66) and a section from the notes to financial statements (page 77).\r\n\r\n\u00a0<\/span><\/span>\r\n\r\nQuestions<\/strong>\r\n
    \r\n\t
  1. What types of plant assets does Walt Disney have?<\/li>\r\n\t
  2. What depreciation method does Walt Disney use?<\/li>\r\n\t
  3. What is the net book value of all of Walt Disney\u2019s PP&E?<\/li>\r\n\t
  4. Give an example of each type of PP&E listed in the Notes excerpt.<\/li>\r\n\t
  5. The category of \u201cFurniture, fixtures, and equipment\u201d has a range of estimated life in years from 3 \u2013 25 years. Give an example of a specific asset that might be in this category.\u00a0 What might be its estimated life and why?<\/li>\r\n<\/ol>\r\n<\/div>","rendered":"

    Book value of an asset (or net book value) is calculated by taking the original cost of the asset – accumulated depreciation on the asset.<\/p>\n

    To make this more real, let’s look at an actual company:<\/p>\n

    What does Walt Disney\u2019s Form 10-K communicate about its\u00a0PP&E?<\/h1>\n

    \u00a0<\/span><\/p>\n

    \n

    \"Picture<\/a>In February 2015, The Walt Disney Company (DIS<\/a>) unveiled its new interactive queue for one of its oldest attractions at its Magic Kingdom Park (Walt Disney World) in Orlando, Peter Pan\u2019s Flight (see video here<\/a>.) As guests wait in line, they enter into the Darling\u2019s foyer. From the foyer, guests head into the children\u2019s nursery. Tinker Bell is seemingly in the room and guests can interact with Tinker Bell and other items in the room.\u00a0 There is a shadow interaction feature created by Disney developers (\u201cImagineering employees\u201d) that allows guests to \u201cplay\u201d with shadows.<\/p>\n

    Walt Disney invests a lot of money into its parks, including upgrades as described above.\u00a0 Under SEC Filings, find the 2014 10K report and see two excerpts from Walt Disney\u2019s 2014 Form 10-K: a partial balance sheet (page 66) and a section from the notes to financial statements (page 77).<\/p>\n

    \u00a0<\/span><\/span><\/p>\n

    Questions<\/strong><\/p>\n

      \n
    1. What types of plant assets does Walt Disney have?<\/li>\n
    2. What depreciation method does Walt Disney use?<\/li>\n
    3. What is the net book value of all of Walt Disney\u2019s PP&E?<\/li>\n
    4. Give an example of each type of PP&E listed in the Notes excerpt.<\/li>\n
    5. The category of \u201cFurniture, fixtures, and equipment\u201d has a range of estimated life in years from 3 \u2013 25 years. Give an example of a specific asset that might be in this category.\u00a0 What might be its estimated life and why?<\/li>\n<\/ol>\n<\/div>\n\n\t\t\t
      \n\t\t\t

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