A major addition to equipment should have been capitalized in the year 2021 but was incorrectly expensed. What would the impact on asset value and income be?

Q: If a company buys an intangible asset, it can only utilize the revaluation model to evaluate the…

A: This question describe about the revaluation model to evaluate the asset's value later.

Q: 4. Which of the following situations would not be permitted to defer the recognition of any…

A: Disposition of Asset is sale of assets due to some unavoidable circumstance.

Q: 1. What amount of depreciation should be reported in the historical cost income statement for 2021?…

A: 1. Depreciation Expense based on Historical Cost = P5,000,000/5years = P1,000,000     2.…

Q: A company fails to capitalize avoidable interest incurred while constructing an asset. What is the…

A: The interest expense incurred for construction of an asset should be capitalized because a new fixed…

Q: Which of the following is not a requirement for an asset to be depreciable?a. It must have a life…

A: Depreciation: A gradual reduction in the value of any asset or a normal wear and tear of the asset…

Q: Over what period of time should the cost of various typesof intangible assets be amortized by…

A: As per IAS 38, intangible assets are classified in finite and and infinite period asset, period here…

Q: Based on the above and the result of your audit, answer the following: (Disregard tax implications)…

A: 3. Depreciation expense of Asset P for the year 2020 = P14500   Depreciation expense of Asset R for…

Q: At the date of purchase, materials, equipment, facilities, and intangibles purchased from others…

A: Recognizing R&D costs, Expense the entire costs, unless the items have alternative future uses…

Q: Which of the following statements related to long-lived assets is true?     Depreciation is…

A: Depreciation : Depreciation is an accounting method of allocating the cost of a tangible or…

Q: Describe to Stan what it means to capitalize an expenditure. What is the general rulefor determining…

A:

Q: Which is not an essential characteristic of property, plant, and equipment? a. These are tangible…

A: The balance sheet is one of the financial statements of the business, which tells about the…

Q: Which of the following is not a condition that must be satisfied before interest capitalization can…

A: Capitalized Interest: Interest is usually paid on the amount borrowed and it is shown as an expense…

Q: Which of the following is not a condition that must be satisfied before interest capitalization can…

A: Option b is the correct answer because the other three options are the conditions that should be…

Q: ment of a long-term asset, the depreciation of a long-term asset, and the sale of a long-term…

A: The organization would be established for doing business in the market. Thus, it requires a lot of…

Q: Which of the following statements is true with respect to intangible assets with indefinite lives? O…

A: As per IAS 36 Intangible assets, For Intangible assets with indefinite useful, Intangible assets not…

Q: a. Using the original values, how much annual depreciation expense did Carla Vista recognize for the…

A: Category of Asset Date Acquired Historical Cost Accumulated Dep Use Full Life Original  Use…

Q: The value of "Property, Plant, & Equipment, net" reported on the balance sheet represents: A) The…

A: Fixed assets are an unavoidable component of every business organization. These assets are useful in…

Q: How much should be the carrying amount of the wasting assets at December 31 of next year?

A: Depletion refers to the allocation or expense of extracting natural resources from the surface of…

Q: What is the amount to be capitalized when repairs or improvements that significantly increase the…

A: Assets are being repaired every now and then. Some repairs are ordinary in nature while others are…

Q: All of the following are true regarding the revaluation model allowed under GAAP except;

A: The revaluation model gives a business the option of carrying a fixed asset at its revalued amount.…

Q: Which of the following transactions and events would result in a deterioration in Net Tangible Asset…

A: Tangible assets are which can be touch felt and can be seen, Whereas intangible assets we cannot…

Q: What is the depreciation expense of the equipment for 2023? what is the recoverable amount of the…

A: An asset is said to be impaired if carrying amount of an asset is higher than the recoverable…

Q: (a)  When would the disposal of a long-term asset result in no gain or loss? (b)  When would the…

A: Long-term assets can be defined as those assets which are held by an investor for a period of more…

Q: There is no change in the asset's useful life or salvage value. The 2021 income statement will…

A: Impairment Loss is the difference between Carrying Amount and Recoverable Amount.  Recoverable…

Q: How much is the additional loss, related to the return of the asset to its original classification…

A: Held for Sales How to account for non-current assets held for sale is described in IFRS 5…

Q: Depreciation is based on the fair value of assets. An impairment loss occurs if the carrying value…

A: GIVEN     Depreciation is based on the fair value of assets. An impairment loss occurs if…

Q: The depreciation expense pertaining to the mining equipment in 2021 amounted to?

A: Depreciation Expense is the Wear Tear Expense for the Usage of the Assets During the Year Formula…

Q: In Able Company’s efforts to estimate a value for Baker Company's goodwill, Able is estimating Baker…

A: Goodwill means the reputation of the company due to any factor like location , product , price ,…

Q: Expenditure on existing property, plant and equipment may be capitalized (recognized as an increase…

A: The answer for the multiple choice question and relevant explanation are presented hereunder : Any…

Q: Routine maintenance costs for capital assets are deducted in the year the amount is paid or…

A: There are two common expenditure are incurred to operate business, one is capital expenditure and…

Q: Question 1 Which of the following statements regarding the acquisition of PP&E is false? Answers:…

A: ‘’Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: Why aren't they fully expensed at the time they are purchased?

A: Assets : - Assets are classified into two types.  1. Fixed assets  2. Current assets Depending on…

Q: an item is capitalized why do you think different depreciation methods are allowed? Does the…

A: “Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: Which of the following statements about capitalizing costs is correct?A. Capitalizing costs refers…

A: There are two type of costs treatments that are being done on all type of costs being incurred. One…

Q: In 2019, A.M.E. Corporation's accountant incorrectly expensed  the cost of a major repairs to one of…

A: When ever any major repair is done on any fixed assets  which would increase the capacity of that…

Q: When an independent valuation expert advises an entity that the salvage value of its plant and…

A: When an independent valuation expert advises an entity that the salvage value of its plant and…

Q: Under the impairment of assets, value-in-use is *   a. The undiscounted present value of future…

A: The impairment loss is recorded as an expense in the income statement of the company.

Q: What is the purpose of amortisation? To allocate the cost of an intangible non-current asset…

A: Amortization and Depreciation are both terminology used in finance

Q: When companies acquire resources (in the form of expenses), they can either be reported as an asset…

A: When the company acquires resources for their operation it will be reported either assets in the…

Q: at a čóst of $395000. The equipment was estimated to have a salvage value of What should be the…

A: Solution:-Option “C” is the correct answer Explanation:- Year Depreciation base Remaining…

Q: At the date of purchase, materials, equipment, facilities, and intangibles purchased from others…

A: If any material, equipment or facility which is expected to yield benefit to the entity for more…

Q: 4. Which of the following situations would not be permitted to defer the recognition of any…

A: The answer for the multiple choice question and relevant explanation are presented hereunder :…

Q: With regard to IAS 16 Property, Plant and Equipment, which of the following statements is true?   A…

A:

Q: Which of the following statements is false? A.For a self constructed asset, capitalized interest…

A: Solution The false statement is  "The cost to build an addition to an existing building should be…