In salvage analysis in corrective maintenance, the decision of replacing an equipment with a new one is based on: a. The cost of maintenance of the current equipment b. The cost of the new equipment C- The skills that workers have on the current equipment d. All of the above

Q: The acquisition costs of property, plant and equipment do not include: a. The ordinary and necessary…

A: When an organization acquired property, plant, and equipment, etc. for the business purpose. It…

Q: For depreciation purposes, what would be the first cost of the new machine(depreciation base)?

A: Depreciation is the charge or expense to be accounted in the books against an asset of the…

Q: the VLN, expenditures after acquisition are either expensed or capitalized. The company spent money…

A: Expenditure made after acquisition of an asset can be treated as capital expenditure or revenue…

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: written down value method is more appropriate than the straight-line method

A: Under written down value method, accelerated depreciation is charged in initial years of useful life…

Q: the cost of moving the machine to another manufacturing plant. the cost of a new attachment to the…

A: Cost incurred subsequent to the acquisition of machine needs to be capitalised, which becomes…

Q: The difference between cost of the asset and residual value is known as _______________. a.…

A: Depreciation is charged on the asset to keep aside some portion of the cost of the asset so that the…

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

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Q: evising an estimate of the useful life or salvage value of a plant asset is referred to as a change…

A: Business Environment is Very Complex Sometimes Assets Life and Salvage Changes and that change is…

Q: The treatment of repairs and additions to property, plant and equipment can be best described as:…

A: Property, plant, and equipment repairs are a type of expenditure incurred after purchasing a…

Q: Identify which of the following is classified as a revenue expenditure a. Installation expense paid…

A: Expenditure can be divided into capital and revenue expenditure. The costs and expenses incurred in…

Q: There are many terminologies used to describe the process of distributing the cost of an item over…

A: The Answer

Q: Which one of the following costs is not directly attributable to the cost of a non-current asset,…

A: IAS 16 Property, Plant and Equipment concern with the accounting treatment for most types of…

Q: Should the engineers be able to assess the reality of depreciating fixed assets?

A: A company should assess the position of its fixed asset and check for its impairment if condition…

Q: Preparing an asset for sale after its useful life is a: a. Maintenance support cost b. Production…

A: Introduction: Cost Accounting: Cost Accounting is for Internal users. For determining costs of the…

Q: Revise your concepts of depreciation and generate a scenario of tangible plant asset depreciation…

A: The question is related to Depreciation Accounting. Required  Explain with the help of an example…

Q: The potential loss because of damage to the insured equipment is a function of the value of the…

A: Potential Loss means the loss suffered due to damages that are accidental in nature like earthquake,…

Q: Classify each of the following as: Extraordinary Repairs, Asset Improvements or Ordinary Maintence…

A: Overhauling an engine in a large truck- Ordinary Maintenance and Repairs Exterior and interior…

Q: Which of the following costs related to computer software is capitalized to an intangible asset…

A: A company’s intangible asset is one that has been created or acquired but cannot be seen by anyone.…

Q: An estimate of how an asset will be used up over its useful life is known as what?   a.…

A: Introduction: Depreciation: Decreasing value of fixed assets over its useful life period called as…

Q: Three key issues associated with determining depreciation expense are the depreciable base,…

A: Depreciable amount is the cost on asset minus its salvage value. Useful life means period over which…

Q: It results not from a deterioration in the asset's ability to serve its intended purpose, but from a…

A: Depreciation is less  in the value of asset. depreciation is a natural phenomenon in which the value…

Q: Verifying repair costs will be handled differently from auditing depreciation costs. What's the…

A: Answer: Repaid costs are the costs that pertains to the maintenance of the assets Depreciation costs…

Q: Addition of a sprinkler system to the manufactoring facility to reduce the risk of fire damage,…

A: Any expense incurred on any asset is either expensed off in the same period or it is capitalized to…

Q: Which method of depreciation is suitable when expenditure on repairs and maintenance, increases as…

A: Hi student Since there are multiple questions, we will answer only first question.

Q: Identify which of the following is classified as a revenue expenditure a. Cost of purchase of…

A: Capital expenditure means the cost incurred for the item which will be used in many year to come .…

Q: Distinguish among spoilage, rework and scrap.

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Q: Why is refinancing often done in conjunction with a renovation?

A: Income property: An income property may be well-defined as the property developed or acquired in…

Q: Depreciation of an asset based on the number of hours of usage is a(n): a. Time-based method b.…

A: Depreciation is a non cash expenses which is charged for reduction in value of asset over the useful…

Q: The controller of Excello Manufacturing, Inc., wants to use analytical procedures toidentify the…

A: Equipment is purchased incurring a number of costs. When equipment is manufactured there are…

Q: Which of the following items is not a consideration when recording periodic depreciation on plant…

A: In order to record the periodic depreciation on Plant Assets Cost, Salvage value and Estimated…

Q: What is the cost of the asset being depreciated? What amount, if any, was used in the depreciation…

A: Depreciation :- The monetary value of an asset decreases over time due to use, wear and tear or…

Q: The life cycle costs of an asset include which of the following? I. Purchase cost of the asset II.…

A: Life cycle cost (LLC) of an asset is refer as the total costs that is incurred throughout the life…

Q: All of the following costs would be included when calculating equipment cost, except: Select one: a.…

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

Q: The salvage value of equipment should not be considered when replacing it with new equipment Select…

A: Salvage value is the sale value of the equipment, when asset was sold by the company.

Q: Several expenditures are listed below. Indicate whether or not each expenditure would be included in…

A: Equipment cost includes  Purchase Price ( Invoice price less deduction )  Transportation ( Freight…

Q: Depreciation of an asset based on the number of hours of usage is a(n) O accelerated method…

A: If an asset is depreciated on the basis of the number of hours used, it will be said that the…

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: Define the term salvage value of the equipment?

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Q: The write-off of the cost of plant and equipment is called a.amortization. b.depletion.…

A: When the tangible asset are write-off then it is called as depreciation.

Q: Discuss when should a company in the extractive industries start accounting for its restoration…

A: Answer are as follows

Q: Capitalizing versus expensing For each of the following expenditures, indicat the type of account…

A: Capital expenditures are those expenditures which are incurred to increase or enhance the value of…

Q: Describe an internal control that would prevent the charging of depreciation expense to the…

A:

Q: Cost to lease (rent) railroad cars Cost of track and bed (ballast) replacement Diesel fuel costs…

A: With the following list of cost. The cost object is train so any cost directly related to train…

Q: Examine the variables that affect the assessment of a depreciable asset's service life

A: This question tells about the variables that affect the assessment of a depreciable asset's service…

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: Which of the following expenditures would be included in the cost of a fixed asset? O a. Sales taxes…

A: COST OF FIXED ASSETS: when we talk about fixed assets and the values at which they should be…

Capital Gain

Any capital asset when sold can give the seller a higher or lower price from its purchase price leading to a capital gain or capital loss. The time period of holding an asset is decided based on if it is a long term or short-term capital gain. On that basis, the rate of taxation is decided if it is 20%, 15% or according to the tax brackets. The rate of taxation differs in the case of equity or debt, whether long or short term. The capital gain can be adjusted from capital loss to arrive at a net capital gain. The amount of gains and the exemption has to be reported in the tax return filed in the financial year in which the asset was transferred. The tax return can be filed quarterly, monthly, semi-annually or annually.