On your own words, describe the methods that companies can implement to depreciate plant assets.
Q: If
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Q: For depreciation purposes, what would be the first cost of the new machine(depreciation base)?
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A: Introduction: A plant asset is a group of assets that are used in a manufacturing process, such as a…
Q: What are plant assets?
A: Solution:- Plant assets means as follows under:-
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Q: Depreciation is the process of allocating the cost of a plant asset to expense in the accounting…
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A: Here is the answer :
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Q: Identify events that might lead to disposal of a plant asset.
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Q: If a business changes the estimated useful life or estimated residual value of a plant asset, what…
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Q: n general, Based on which criteria companies choose the depreciation methods for their depreciable…
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A: As per DU point analysis, ROA(retrun on asets)=(Net Income/Sales)*(Sales/Average Assets)
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A: Disposal of plant assets, may result in gain or loss.
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Q: Discuss when should a company in the extractive industries start accounting for its restoration…
A: Answer are as follows
Q: Explain the accounting issues related to acquiring and valuing plant assets.
A: Following are the accounting issues that are related to acquiring and valuing plant assets: a) Cash…
Q: How is the discarding of a plant asset different from selling a plant asset?
A: Plant asset: Plant assets are buildings, equipment, machinery and other assets. These assets are…
On your own words, describe the methods that companies can implement to
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- Why do we need to depreciate property, plant and equipment? And discuss the treatment of depreciation expense in the financial statementsHow do companies account for long-term assets such as property, plant, and equipment, and what are the key methods used to depreciate these assets over time?Explain the accounting issues related to acquiring and valuing plant assets.
- Explain the depreciation process and benefits of property, plant and equipment?What characteristics of a plant asset make it different from other assets? Why does GAAP require depreciation for certain plant assets? The balance in an Accumulated Depreciation - Equipment account does not represent funds to replace the equipment when it wears out; instead, what does it represent?What industry would most likely use the straight-line and units of activity depreciation methods and explain why they would use those methods.
- Why do we need to depreciate our property, plant, and equipment? (Discuss also the treatment of depreciation expense in the financial statements.)Describe the different methods available for recording depreciation on plant assets. Recommend the approach that you feel would be most advantageous for your selected company and explain why. Discuss the process for reporting contingent liabilities in the financial statements. Provide two examples of contingent liabilities that you might expect to see on your selected company’s balance sheetIf a business changes the estimated useful life or estimated residual value of a plant asset, what must the business do in regard to depreciation expense?
- Which of the following statements is (are) correct?a. Accumulated depreciation represents a cash fund beingaccumulated for the replacement of plant assets.b. The cost of a machine includes the cost of repairingdamage to the machine during the installation process.c. A company may use different depreciation methods inits financial statements and its income tax return.d. The use of an accelerated depreciation method causesan asset to wear out more quickly than does use of thestraight-line method.Based on the knowledge that you have learned from this unit and the relevant accounting standards, answer the following questions. Your answers must demonstrate your own understandings and applications of relevant accounting standards, but not a direct quote of the standards. a.Use an example to explain what are included in the original cost of property, plant, and equipment when they are initially acquired. b. What is the basic principle for valuing property, plant, and equipment acquired in exchange for other non-monetary assets? c. Use an example to illustrate how gain or loss on disposal is calculated and recorded when an item of property, plant, and equipment is disposed of.Why are the costs of plant/long term assets recovered through depreciation vs. expensed out during the period purchased?