How is the discarding of a plant asset different from selling a plant asset?

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: What are the benefits of the book depreciation? When is it used?

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

Q: Explain the Costs of Defending Intangible Rights.

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

Q: Which of the following doesn't represent depreciation Select one: O a. It is the process of…

A: Depreciation is an accounting method that allows a company to write off an asset's value over a…

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: 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: Why might the actual holding period for a property be different from the holding period that was…

A: The consideration while anticipating holding period: 1.The rental from the property. 2.The rate at…

Q: Present an argument to support the idea that your company’s land should not be depreciated, even…

A: Depreciation seems to be an accounting technique for distributing a physical or material asset's…

Q: It is the expected selling price of a property when the asset can no longer be used by its owner.…

A: Purchase value of assets is cost of assets purchase plus expenses incurred at the time purchase.

Q: How can be Preservation and Maintenance of the Property can be done?

A: Preservation and Maintenance of Property can be done as follows: The borrower of the property…

Q: Are litigation costs to defend an intangible asset capitalized or expensed? Explain your answer.

A: Litigation Costs should be capitalised and amortised over the remaining useful life of the related…

Q: Which of the following is NOT a way to dispose of an asset? a.Sell it. b.Exchange it for another…

A: solution concept Disposing of the asset                 Discarding a asset means retiring the asset…

Q: What characteristics of a plant asset make it different from other assets?

A: Assets means anything which will enable a business enterprise to get cash or benefit in…

Q: How should intangible assets and property, plant, and equipment (PP&E) be treated when their service…

A: The Answer

Q: Why are the costs of plant/long term assets recovered through depreciation vs. expensed out during…

A: Introduction: Depreciation refers to two aspects of the same concept: first, the actual decrease in…

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: Why would refinancing be an alternative to sale of the property?

A: Individuals always buy the properties taking the mortgage because payment for buying the property…

Q: Which of the following is not a major characteristic of a plant asset? Possesses physical substance…

A: An asset is a resource with economic value that a firm controls in lieu of that it will provide a…

Q: There are much argument about using cost instead of fair value to record acquired assets. In your…

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Q: What is the carrying value of Land after the recognition of the impairment loss?

A:

Q: What are some factors that could explain the predominant use of the straight-line depreciation…

A: Straight-line Depreciation:Under the straight-line method of depreciation, the same amount of…

Q: Explain the concept of VALUE IN USE. Why can it be a basis for recoverable amount of an item of…

A: Value in use means the asset’s net worth for the present time. Value in use is used to take decision…

Q: On your own words, describe the methods that companies can implement to depreciate plant assets.

A: The methods to depreciate the plant assets are as follows, Straight Line Depreciation: This is also…

Q: Why was land registration a critical issue in maintaining property rights?

A: The primary goal of property rights, as well as their primary accomplishment, is to eliminate…

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: Land is not an asset we depreciate. Explain what it is not treated as an asset we depreciate?

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Q: For what reasons are plant assets retired? Define inadequacy,supersession, and obsolescence.

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Q: What are the potential tax consequences of selling an old asset in an asset replacement investment…

A: Calculation of potential tax consequences of selling an old asset::: In the given case if the sale…

Q: The unrealized gains and losses from intercompany transactions involving plant assets might be…

A: Depreciable assets are those assets that are eligible for taxation and accounting purposes for…

Q: Explain why depreciation on an existing asset is always irrelevant.

A: Fixed assets are those assets that are being held by the business for a longer period of time. For…

Q: Explain the depreciation process and benefits of property, plant and equipment?

A: Depreciation on Property, Plant, and Equipment: It is considered as the charge against the profit…

Q: Explain what is meant by the impairment of the value of property, plant, and equipment and…

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

Q: What is meant by the “depreciable cost” of a plant asset?

A: The assets having the life of more than a year can be classified as non-current or plant assets.…

Q: TRUE OR FALSE? An item of property plant and equipment can be asset held for sale.

A: The assets of the business are classified as current assets, fixed assets, tangible assets or…

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: How is gain or loss determined when disposing of plant assets? What situation constitutes a gain?…

A: Disposal of plant assets, may result in gain or loss.

Q: What is the basic principle for valuing property, plant, and equipment and intangible assets…

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