Which of the following statements is FALSE? ◇ If an improvement or replacement is made and the carrying value of the asset that is removed is not known and the assets useful life is extended, accumulated depreciation should be debited for the cost of the improvement/replacement. O If the orginial cost of an installation is not known, and the rearrangement/reinstallataion cost is material in amount and benefits future periods, the cost should be capitalized as an asset A major repair should be treated as an addition, improvement or replacement. All of the above are truc
Which of the following statements is FALSE? ◇ If an improvement or replacement is made and the carrying value of the asset that is removed is not known and the assets useful life is extended, accumulated depreciation should be debited for the cost of the improvement/replacement. O If the orginial cost of an installation is not known, and the rearrangement/reinstallataion cost is material in amount and benefits future periods, the cost should be capitalized as an asset A major repair should be treated as an addition, improvement or replacement. All of the above are truc
Chapter11: Long-term Assets
Section: Chapter Questions
Problem 14MC: Which of the following is true regarding special issues in accounting for long-term assets? A. An...
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Question
![Which of the following statements is FALSE?
◇ If an improvement or replacement is made and the carrying value of the asset that is
removed is not known and the assets useful life is extended, accumulated
depreciation should be debited for the cost of the improvement/replacement.
O If the orginial cost of an installation is not known, and the
rearrangement/reinstallataion cost is material in amount and benefits future periods,
the cost should be capitalized as an asset
A major repair should be treated as an addition, improvement or replacement.
All of the above are truc](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F5bd9fd3d-4f4d-4003-91c9-9c50e6822cb0%2F90a24002-2dc6-4838-930b-4b23d3f84d7f%2Fqwv5vxt_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Which of the following statements is FALSE?
◇ If an improvement or replacement is made and the carrying value of the asset that is
removed is not known and the assets useful life is extended, accumulated
depreciation should be debited for the cost of the improvement/replacement.
O If the orginial cost of an installation is not known, and the
rearrangement/reinstallataion cost is material in amount and benefits future periods,
the cost should be capitalized as an asset
A major repair should be treated as an addition, improvement or replacement.
All of the above are truc
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