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Bsa 375 Week 4 Team Assignment #4

2Week 4 Learning Team AssignmentProblem 10-4, p. 543Indicate how these items would be reported on the income statement of Hollerith Co.A) Land- $35,000 should be held for investment on effect on income statement but has an effecton balance statement. The $9,000 is considered to be is an involuntary conversion and should be subtracted from the cost $40,000 - $9,000 = $31,000 which equals the fair value amount.B) Building- the cost of demolition less its salvage value is a cost of getting the land ready for its intended use. The remaining balance (cash proceeds) is allocated to land. There is no recognized gain or loss. C) Warehouse– The destruction of the warehouse is an extraordinary expense of $15,000. The related transactions would be reported as a gain of $ 20,000 $70,000-16,000 (accum. depreciation) = 54,000;74,000-54,000 = 20,000D) Machine– Old machinetotal gain reported as $2,000:$8,000-2,800 = 5,2007,200-5,200 = 2,000Deferred gain is $1,750:$2,000x(900/6300+900) = $2502,000-250 = 1,750

Implementation Now that the system is created it’s going to have to be implemented into the working environment in order to get it up and running, it’s going to have to be implemented slowly so that we can show the employees of Riordan’s Human Resources Department how it works. We will start by putting one computer into place and getting it up and running. Now we will show the employees what the new system can do and describe to them how it’s going to work. We will install each computer that will be a part of the system one at a time as not to interfere with the business, and to not interrupt the business. We don’t want to cause any problems to the company’s business in the process of switching their system. We don’t want them to lose valuable time or information so we will replace each part of the system slowly and in a manner that will effectively make it so that they can still do their work and still succeed in what they need to do. Coding – During the Implementation of the new system it will be important for the programmers to create the programs that are going to run the system and make it effective. They will need to produce programs for the business that will help the Human Resources Department to do their job and make it easier for them to retrieve employee information, store employee information and will overall make their job much easier and more user friendly. They will need to look at everything that is required of the Human Resources