The 2016 financial statements of Willamette Valley Vineyards include the following footnote:
Note 4. Property and Equipment

a. Estimate the useful life on average for Willamette's depreciable assets at the end of fiscal 2016. What assets does a wine producer such as Willamette Valley Vineyards own that would explain the useful life you calculated?
b. Assume that on January 1, 2017 the company determined that a building with a net book value of $950,000 had a fair value of $400,000. How would this affect the company's balance sheet and income statement in 2017?

Question

The 2016 financial statements of Willamette Valley Vineyards include the following footnote:
Note 4. Property and Equipment
  
a. Estimate the useful life on average for Willamette's depreciable assets at the end of fiscal 2016. What assets does a wine producer such as Willamette Valley Vineyards own that would explain the useful life you calculated?
b. Assume that on January 1, 2017 the company determined that a building with a net book value of $950,000 had a fair value of $400,000. How would this affect the company's balance sheet and income statement in 2017?

Quizplus · Accepted Answer

The Answer of The 2016 financial statements of Willamette Valley Vineyards include the following footnote:
Note 4. Property and Equipment
  
a. Estimate the useful life on average for Willamette's depreciable assets at the end of fiscal 2016. What assets does a wine producer such as Willamette Valley Vineyards own that would explain the useful life you calculated?
b. Assume that on January 1, 2017 the company determined that a building with a net book value of $950,000 had a fair value of $400,000. How would this affect the company's balance sheet and income statement in 2017?

The 2016 Financial Statements of Willamette Valley Vineyards Include the Following