Gains and losses arising from the retirement or disposal of an item of property, plant and equipment shall be determined as the difference between *   Gross disposal proceeds and the cost of the asset Gross disposal proceeds and the carrying amount of the asset Net disposal proceeds and the cost of the asset Net disposal proceeds and the carrying amount of the asset

Q: The book value of a depreciable asset is       A. The original cost of the asset.       B. The…

A: Book value of a depreciable asset means value at which that asset is shown in the balance sheet of…

Q: When an item of property, plant, and equipment is disposed of, how is gain or loss on disposal…

A: When an item of property, plant and equipment is disposed of, then gain or loss is determined by…

Q: Depreciation is the process of allocating the cost of a plant asset to expense in the accounting…

A: Plant is purchases in the year of its purchase. But the benefit from the plant comes in later years…

Q: After the disposal of an asset, the balance in the Accumulated Depreciation account related to that…

A: Depreciation are required to be charged by the business entities so as to shown the assets in 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: In accounting for the acquisition of assets, the assets acquired are to be recorded at the ‘cost of…

A:

Q: The cost of an asset that is subject to depreciation is called a.depreciable cost. b.trade-in…

A: Depreciable cost is that portion of cost of asset which can be depreciated. Trade in value relates…

Q: describe the costs associated with tangible and intangible assets, and the methods of expensing…

A: Tangible Assets: Intangible assets are tangible assets that can be touched or felt. They include…

Q: Why do we need to depreciate our property, plant, and equipment? (Discuss also the treatment of…

A: Depreciation can be referred to as loss in the value of a non-current asset which arises due to its…

Q: Depreciation is the process of allocating the cost of a plant asset to expense in the accounting…

A: Plant means the fixed assets which is used in business for furtherance of business and not held for…

Q: The cost of an asset that is subject to depreciation os called?

A: Assets: Assets are those resources that are owned by the business organization which has an economic…

Q: Describe the diff erent depreciation methods for property, plant, and equipment and theeff ects of…

A: Depreciation: It is a concept that is used to measure the reduction in the usefulness of fixed…

Q: Why are property, plant and equipment capitalized as an asset and not expensed

A: Property, Plant and Equipment are tangible assets of the business which provides benefit to the…

Q: Income earned from incidental operations before an asset is put to use is: deducted from the…

A: Incidental Revenue - Incidental revenue can be earned anytime during or before the assets put to use…

Q: Tangible assets that are arrached to natural resources are depreciated over a. The life of the…

A: when tangible assets are attached to natural resources -  tangible assets are depreciated as follows…

Q: Depreciation is a process of: a. Asset devaluation b. Cost accumulation c. Cost allocation d.…

A: Depreciation is the process of cost allocation of an asset. It is made due to the wear and tear and…

Q: Under IFRS, the costs of relocating property, plant, and equipment can be capitalized as assets and…

A: Cost of capitalization: When an asset is constructed or bought, there are two costs that would form…

Q: A gain or loss on disposal of a plant asset is determined by comparin O replacement cost of the…

A: In the business world, the term "book value" was coined to indicate the current value of a…

Q: The following would affect the net income on the last year of the useful life of a long-lived asset…

A: Long lived assets are the fixed assets of the business, which are held by the business for the…

Q: Under current standards, a subsequent expenditure on an item of property, plant and equipment is…

A: Subsequent expenditure on an item of property, plant, and equipment that provides future economic…

Q: The carrying amount of an item of property, plant and equipment that is subsequently accounted for…

A: The answer is option (3.) [ i.e, the historical cost less any accumulated depreciation and any…

Q: Match the term on the left to the appropriate description on the right. v Historical cost A. The…

A: 1. In this question we match the write explanation with proper headings.This is match the columns.…

Q: We normally record a long-term asset at the a. Cost of the asset only.b. Cost of the asset plus all…

A: We normally record a long-term asset at the cost of the asset plus all costs necessary to get the…

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

A:

Q: Estimate the average total estimated useful life of depreciable property, plant, and equipment. Does…

A: Plant, property and Equipment refers to the tangible asset of the firm. Any tangible asset have a…

Q: Which of the following costs generally would be capitalized to a property, plant and equipment…

A: As per IAS 16 of IFRS Property plant and equipment, All costs incurred to bring asset to its present…

Q: Explain the appropriate accounting treatment required when a change is made in the service life or…

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

Q: The factors used to compute depreciation expense are an asset's: O Cost, residual value, and service…

A: Depreciation expense is the amount which shows the decrease in the value of asset over its useful…

Q: Determine an asset's depreciable life?

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

Q: The expected amount that an entity would currently obtain from disposal of the asset after deducting…

A: An asset can be define as the resource which can be use by an individual, group, company and country…

Q: In all cases, net property, plant and equipment (PP&E) should be calculated as the gross PP&E less…

A: Solution: Gross PP &E  = Cost of purchase of PPE Accumulated depreciation = Depreciation…

Q: It is the initial cost of acquiring an asset, plus sales tax, transportation and normal costs of…

A: Cost of the asset is the cost which has been paid by the company in order to buy the asset and on…

Q: A gain or loss on the sale of a plant asset is determined           by comparing the:       A.…

A: Solution:- A gain or loss on the sale of a plant asset is determined as follows under:-

Q: The cost of an asset that is subject to depreciation is called?

A: The cost of an assets that is subject to depreciation is called depreciable cost and not the actual…

Q: Which of these costs are taken as a part of cost of assets?   I. Invoice price II. Transportation…

A: Invoice price is the price at which the asset is purchased from the manufacturer or retailer of the…

Q: A gain or loss on disposal of a plant asset is determined by comparing the O a) book value of the…

A: Book Value of the asset refers to the current value of the asset computed by deducting the…

Q: Required In each of these cases, determine the amount of cost to be capitalized in the asset…

A: Cost allocation refers to the process which is used by the company to allocate the cost of product…

Q: treatment of depreciation

A: Depreciation is the expense charged to account the losses arising due to wear and tear of fixed…

Q: ide a

A: As per the IAS 36 Impairment of asset we need to identify the asset that may be impaired and for…

Q: When an item of property, plant and equipment is derecognised, the treatment of any revaluation…

A: When a asset is revalued and if there is any revaluation gain then such revaluation gain should be…

Q: ame depreciation methods that deduct residual value before an asset is deprecia

A: Solution: Following are depreciation methods that deduct residual value before an asset is…

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: The adjusted cost base (or capital cost) of an asset includes a number of costs. Indicate which cost…

A: Adjusted Cost-:An adjusted cost base is an earnings/income tax word that relates to the modification…

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: to the cost of the asset. (a) Is it perm record additional depreciation on the

A: The value of the fixed assets decreases over the period of time due to wear and tear so as to record…