Define the term salvage value of the equipment?

Q: Who should authorize disposal of fixed assets?

A: Disposal of Fixed Asset: Disposal of fixed asset is a process of selling off the asset whose…

Q: What are the major factors considered in determiningwhat depreciation method to use?

A: Depreciation: Depreciation refers to the reduction in the monetary value of a fixed asset due to its…

Q: practice, would you expect the depreciation expense for a non-current asset to be overestimated or…

A: Depreciation is charged for non current asset being tangible asset, because of its wearing and tear…

Q: What amount should be capitalized as the cost of the new equipment?

A: As per the relevant IFRS "PPE", all the costs incurred by the Business Entity, to bring the Asset…

Q: What is the salvage value of the asset?

A: Depreciable cost: It refers to the cost of an asset that is subject to depreciation. Depreciable…

Q: Depreciation measurement should be based on

A: Depreciation expense is a charge against the profit that is reported on the income statement of the…

Q: Estimates of an asset's salvage value and usable life are used to determine depreciation costs. Is…

A: Different methods of depreciation are based on the useful life of the asset. However, one of the…

Q: at is the difference between depreciation and im

A: Depreciation: Depreciation is an accounting methodology of allocating the price of a tangible or…

Q: Define the term Estimated salvage value?

A: Estimated salvage value It is the evaluated book value of an asset after depreciation is finished,…

Q: Based on the information in the screenshot for CASE I, what value should equipment be recorded at,…

A:

Q: Which one of the following is not one of the factors in computing depreciation? Cost price…

A: Depreciation means the loss in value of assets because of usage of assets , passage of time or…

Q: What is the impairment loss to be allocated to the equipment?

A: An impaired loss is the loss which results to the asset of the company as a result that the market…

Q: Discuss and explain the tension between “Asset Transformation” and “Asset Conversion”

A: There exists a subtle yet systematic tension between asset transformation and asset conversion. Both…

Q: Find the FASB ASC reference that explains how to measure an asset's impairment loss.

A: ASC- 360 provides guidance on accounting for the impairment or disposal of long-lived assets. The…

Q: What costs should be included when measuring the total cost to acquire a long-term asset?

A: Long-term assets: The assets which are used to generate revenue for the business operations for a…

Q: What is the cost of the asset being depreciated? Cost of asset %24

A: Under straight line method of depreciation, the value or cost of asset is reduced equally over the…

Q: What statement is loss of sold equipment on?

A: Loss on sale of Equipment is a non operating loss. Such losses are shown in Income Statement after…

Q: What is depreciation? Define useful life, residual value, and depreciable cost.

A: Depreciation is a method of allocation of cost of a fixed asset over its useful life. The value of…

Q: What are the objectives of a fixed asset system?

A: Fixed Assets:   The asset used by company for more than one year is known as fixed asset. Fixed…

Q: Define asset impairments.

A: Property, Plant, and Equipment:   Property, Plant, and Equipment refers to the fixed assets, having…

Q: What was the acquisition cost of the equipment?

A: Given the salvage value = 15000 Useful life = 10 years Depreciation for 4th year = 63636 If the…

Q: How much is the initial cost of the asset?

A: Purchase price  Less: Trade discount/Rebate  Add: Import Duties  Add: Non refundable taxes  Add:…

Q: How can we determine the service life of an asset?

A: A tangible asset is a substantial resource. Tangible resources incorporate fixed resources including…

Q: Do the fixed assets lose their value even though they continue to function and contribute to the…

A: Meaning of Fixed Assets Fixed assets are those assets which are used in the business with the…

Q: What are the requirements of depreciating an asset?

A: Depreciation is a non-cash expense which is charged against the use of the fixed assets of the…

Q: The cost of an item of property, plant and equipment includes all of the following, except Purchase…

A:

Q: Discuss the overarching idea of Asset Liability Management and its key objectives. How does the…

A: Asset and liability management practices were first introduced by financial institutions during the…

Q: In what ways might a depreciable asset's estimated service life be influenced?

A: The Answer

Q: Determine an asset's depreciable life?

A: A tangible asset is a substantial resource. Tangible resources incorporate fixed resources including…

Q: What factors must be known or estimated in order to compute depreciation expense?

A: Definition: Depreciation: Depreciation is a decrease in the value of the fixed assets over a period…

Q: What are the goals of asset & liability management (ALM)?

A: Assets are the resources owned or control by an entity to produce economic value in the coming…

Q: Explain the process of ‘impairment of an asset’ and its definition? Explain how to account for an…

A: Impairment of assets means reducing the cost of assets when carrying amount is more than value in…

Q: Why was the salvage value used in calculating the depreciation expense?

A: This method also called diminishing balance method or declining balance method where the…

Q: Asset disposal

A: Asset is the resources owned by a firm at a particular point of time out of which it is expected…

Q: Explain straight line depreciation formula?

A: Depreciation:   Depreciation refers to the reduction in the monetary value of a fixed asset due…

Q: Describe the Costs of Defending Intangible Rights.

A: Introduction Intangible assets are the assets that cannot be seen physically, but its' presence in…

Q: What are two advantages to basing the valuation of assets and liabilities on their historical cost?

A:

Q: Property plant and equipment are considered what type of asset?

A: basically classification of asset is done based on the nature of the asset .there are two types of…

Q: Define the term the depreciable life of the asset?

A: Depreciation  is an accounting process through which allocation of an asset’s cost during its useful…

Q: Depreciation expense is calculated using its cost, estimates of an asset's salvage value, and an…

A: Straight line depreciation formula: Depreciation = (Cost of asset - salvage value) / Life of the…

Q: Define salvage value

A: ASSET REDUCE ITS CVALUED THROUGH OUT THE LIFE OF THE ASSET.

Q: What is asset specificity?

A: It is a term which is specially used to depict the inter party relationships amongst transactions