If a company were filing a claim for compensation with an insurance company for manufacturi equipment damaged in a flood, what method of valuation for the equipment would be most relevant? Historical cost Net realizable value Depreciated historical cost Replacement cost
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A: The Answer
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A:
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- Statement 1: A recovery of impairment for a tangible long-lived asset is limited to the carrying value that would have been reported had the impairment not occurred.Statement 2: After an impairment loss is recorded, the recoverable amount becomes the basis for the impaired asset and is used to calculate depreciation in future periods. Group of answer choices Only statement 2 is correct Both statements are correct Both statements are incorrect. Only statement 1 is correct.Ay 4. When a company revises an estimate used to record depreciation expense, the company should revise depreciation by using the formula (_______ - revised salvage value)/revised remaining useful life.Statement 1: The cost of an asset, or other amount substituted for cost, less its residual value is called “depreciation”. Statement 2: And, “depreciation” on the other hand, is the systematic allocation of theamount of depreciation of an asset over its useful life. a. Statement 1 is correct b. Statement 2 is correct c. Both statements are correct d. Both statements are wrong
- 1. Distinguish among depreciation, depletion and amortization. 2. Identify the factors that are relevant in determining the annual depreciation charge and explain whether these factors are determined objectively or whether they are based on judgment. 3. For what reasons are plant assets retired? Define inadequacy, supersession, and obsolescence. 4. What are the major factors considered in determining what depreciation method use? 5. List the similarities and the differences in accounting treatments of depreciation and cost depletion.Statement 1: The cost of an asset, or other amount substituted for cost, less its residual value is called “depreciable amount”. Statement 2: And, “depreciation” on the other hand, is the systematic allocation of the amount of depreciation of an asset over its useful life. a. Statement 1 is correct b. Statement 2 is correct c. Both statements are correct d. Both statements are wrongQ1 Which of the following statement (s) is (are) true? (i) When no future economic benefits are no longer expected to flow from an intangible asset, such asset should be derecognized the financial statements of an organization. (ii) When an intangible asset is derecognized, the carrying amount should be written off as a loss in the profit or loss statement at the date of retirement of the asset. (iii) When an intangible asset is sold, the difference between the carrying amount and consideration received is recognized in the profit or loss statement at the date of the sale. (iv) Consideration to be received in the event of sale of an intangible asset should only be cash Select one: a. (ii) and (iv) only b. (i) and (ii) only c. (i) and (iv) only d. (i), (ii) and (iii) only
- Hw would you best define an intangible asset? A. Assets that dont impact the company's valuation B. Assets with physical traits, such as property or equipment C. Assets not recorded on the Balance Sheet, such as customer loyyalty or intellectual property D. Assets that were added to the company in the most recent annual report E. Assets that depreciate at an accelerated rate(4). Depreciation of an asset based on the number of hours of usage is a(n) (a). time-based method (b). accelerated method (c). replacement method (d). activity-based methodAccess the FASB Accounting Standards Codification at the FASB website (asc.fasb.org). Determine the specific citation for each of the following items: 1. Depreciation involves a systematic and rational allocation of cost rather than a process of valuation. 2. The calculation of an impairment loss for property, plant, and equipment. 3. Accounting for a change in depreciation method. 4. Goodwill should not be amortized.
- 6 The difference between cost of the asset and residual value is known as _______________. a. Depletion b. Depreciable cost c. Salvage value d. Total cost of the asset Clear my choiceQuestion #5 b. What is the difference between User Specific Qualities and Primary Qualitative Characteristics? c. If I want to book one month depreciation of $270.12 for an asset, what is the journal entry? d. List the four importance of accounting standards. e. Please give the three things considered and posted when disposing of a fixed asset.Statement 1: The cost of an asset, or other amount substituted for cost, less its residual value is called “depreciable amount”. Statement 2: And, “depreciation” on the other hand, is the systematic allocation of the amount of depreciation of an asset over its useful life. Statement 1 is correct Statement 2 is correct Both statements are correct Both statements are wrong