gnmentHelpSave & ExitSubmitCheck my workQS 8-2 (Algo) Assigning Costs to plant assets LO C1Listed below are costs (or discounts) to purchase or construct new plant assets. (1) Indicate whether the costs should be expensed orcapitalized (Meaning they are included in the cost of the plant assets on the balance sheet) (2) For costs that should be capitalized,indicate in which category of plant assets (Equipment, Building, or Land) the related costs should be recorded on the balance sheet.ListCategory1. Insurance on building after construction is complete and it is in use.2. Permit charges incurred by a delivery driver to transport new equipment to the warehouse.3. Janitorial costs incurred to clean equipment.4. Insurance on a new building during its construction.Expensed5. Sales tax on new equipment purchased.Capitalized-Building6. Costs to clear and grade land purchased for a new plant.Capitalized-Equipment7 Property tax on land incurred after it was purchased.Capitalized-Land8. Repair costs to fix new equipment damaged by the crew that unpacked it.< Prey7 of 8Next >search> 76°F底 )11:24 AM9/17/20218lockRIY.UGenterMIpauseciri

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Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter8: Operating Assets: Property, Plant, And Equipment, And Intangibles

Section: Chapter Questions

Problem 8.1KTQ

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Trinkle Company made several purchases of long-term assets during the year. The details of each purchase are presented here. New Office Equipment 1. List price: $42,600; terms: 2/10, n/30; paid within the discount period. 2. Transportation-in: $880. 3. Installation: $400. 4. Cost to repair damage during unloading: $630. 5. Routine maintenance cost after eight months: $150. Basket Purchase of Copier, Computer, and Scanner for $52,500 with Fair Market Values 1. Copier, $23,421. 2. Computer, $12,027. 3. Scanner, $27,852. Land for New Warehouse with an Old Building Torn Down 1. Purchase price, $83,800. 2. Demolition of building, $4,760. 3. Lumber sold from old building, $1,780. 4. Grading in preparation for new building, $7,900. 5. Construction of new building, $279,000.
Plant Asset Cost Listed below are certain costs (or discounts) incurred in the purchase or construction of new plant assets. (1) Indicate whether the costs should be expensed or capitalized (meaning they are included in the cost of the plant assets on the balance sheet). (2) For costs that should be included in plant assets, indicate in which category of plant assets (Equipment, Building, or Land) the related costs should be recorded on the balance sheet. Expensed or Capitalized Asset Category 1. Charges incurred to train employees to use new equipment 2. Invoice cost to purchase new equipment 3. Deduction for an early payment discount taken on the purchase of new equipment 4. Real estate commissions incurred on land purchased for a new plant 5. Property taxes on land incurred after it was purchased 6. Costs of tune-up for the truck used to deliver new equipment 7. Costs to lay the foundation for a new building 8. Insurance on a new building during the construction phase
Depreciation of a plant asset is the process of ________. A. asset valuation for statement of financial position purposes B. allocation of the assets cost to the periods of use C. fund accumulation for the replacement of the asset D. asset valuation based on current replacement cost data
Exercises E9.1 (LO 1), AP Writing The following expenditures relating to plant assets were made by Glenn Company during the first 2 months of 2022. Determine cost of plant acquisitions. 1. Paid $7,000 of accrued taxes at the time the plant site was acquired. 2. Paid $200 insurance to cover a possible accident loss on new factory machinery while the machinery was in transit. 3. Paid $850 sales taxes on a new delivery truck. 4. Paid $21,000 for parking lots and driveways on the new plant site. 5. Paid $250 to have the company name and slogan painted on the new delivery truck. 6. Paid $8,000 for installation of new factory machinery. 7. Paid $900 for a 2-year accident insurance policy on the new delivery truck. 8. Paid $75 motor vehicle license fee on the new truck.
Cost includes all costs necessary to bring the asset to a working condition for its intended use. Which of these costs are taken as a part of cost of assets? I. Invoice price II. Transportation cost III. Installation charges I and II II and III I, II and III I and III
Listed below are costs (or discounts) to purchase or construct new plant assets. (1) Indicate whether the costs should be expensed or capitalized (Meaning they are included in the cost of the plant assets on the balance sheet.) (2) For costs that should be capitalized, indicate in which category of plant assets (Equipment, Building, or Land) the related costs should be recorded on the balance sheet. List 1. Costs to clear and grade land purchased for a new plant. 2. Parking ticket fees incurred by the delivery truck that illegally parked when delivering new equipment. 3. Demolition costs to remove an old building on land purchased. 4. Janitorial costs incurred to clean equipment. 5. Repair costs to fix new equipment damaged by the crew that unpacked it. 6. Costs to lay foundation for a new building. 7. Costs to unpack and assemble new equipment. 8. Costs charged by a contractor to install new equipment into the production line. Category
(Multiple Choice Question) Amortizable Cost refers to 1. An asset's Net Book Value minus its Accumulated Amortization 2. The added cost of a capital asset after undergoing a capital improvement 3. The portion of the cost of the asset that will amortize over its useful life 4. The entire cost of a capital asset
icerca Dashboard My courses Which of these is an allowable cost of an asset under IAS 16? 1. Professional fees 2. General overheads 3. Cost of site preparation 4. Initial operating losses 5. Administration expenses 6. Decommissioning costs O a. 1, 3 and 6 O b. 1, 3 and 5 O c. 1, 2 and 6 O d. 1, 2 and 4 O Financial Reporting (level 5) (2022_23) t Y ASUS ZenBook Assessment
Costs incurred internally to create intangibles are required to be a. expensed as incurred b. capitalized c. expensed only if they have a limited life O d. capitalized if they have an indefinite life
Reproduction value is theA. Estimate of cost of reproducing, creating , developing or manufacturing a similar assetinternallyB. Salvage value of the assetC. Net value reflected in the company’s financial statementsD. Cost of similar assets that have the nearest equivalent value as of the valuation date
19 .All amounts paid to acquire a PPE and to get it ready for its intended use are referred to as: A. set up costs. B. expenditures. C)maintenance expense. D)the cost of an asset. 20. Costs that would be included with the purchase of a PPE are: A)the sum of all of the costs incurred to bring the asset to its intended use. B)only costs that exceed a certain amount. C)only the purchase price. D)none of the above. 21. Which of the following should be included in the cost of land? A) Construction cost of a parking lot B)Landscaping C) Real estate brokerage commission D) Lighting
The life cycle costs of an asset include which of the following? I. Purchase cost of the asset II. Shipping and installation cost of the asset. III. Operating and maintenance cost of the asset IV. Salvage value of the asset. Solve, a. I and IV only b. I, III, and IV only c. I and III only d. I, II, III, and IV.

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