Why is the cost of a lump-sum purchase allocated to the individual assets acquired?

Q: What entry is made when selling a fixed asset?

A: Following entry is passed when selling the fixed assets:

Q: In accounting for the acquisition of assets, the assets acquired are to be recorded at the ‘cost of…

A:

Q: Which two models may an entity opt for when accounting for investment property?

A: Investment property is a type of properly held by personnel for the intention of earning returns…

Q: Required Determine the capitalized cost of the asset.

A: Step 1 Hello. Since your question has multiple parts, we will solve first question for you. If you…

Q: Identify the items included in the cost of a self-constructed asset and determine the amount of…

A: The self-constructed asset costs included in the asset cost are as follows direct materials direct…

Q: what are some pros and cons of holding high level of current assets in relation to sale?

A:

Q: Determine the initial cost of individual property, plant, and equipment andintangible assets…

A: Intangible assets: These are the long-term assets that are not physical in nature, but possess…

Q: How much is the gain or loss on sale of the land, if any?

A: G)                                                           Gain or loss on sale of land   A…

Q: What costs should be included when measuring the total cost to acquire a long-term asset?

A: Long-term assets: The assets which are used to generate revenue for the business operations for a…

Q: 26. What is the general formula for calculating the gain or loss realized on the sale or other…

A: The gain or loss on the sale of the property can determine with the help of the difference between…

Q: Sale of an capital assets

A: Sale of an capital assets is subject to CAPITAL GAIN.

Q: When nonmonetary assets are exchanged, a company records the cost of the nonmonetary asset acquired…

A: The cost of the nonmonetary asset acquired will be explained:

Q: Explain the difference between tangible and intangible long-lived, revenue-producing assets.

A: Tangible assets are those assets which appear in the physical form and it is measurable. Assets like…

Q: The cost of land usually includes all of the following except a. commission related to acquisition…

A: Cost of land is the value of the land and the enhancements made to the land. The detailed…

Q: What would be the gain or loss on sale of land in the transaction attached? Why?

A: Gain or loss from sale of asset is calculated when book value of the asset is different from the…

Q: When disposing of an available-for-sale investment, where is the gain or loss on disposal reported…

A:

Q: Tangible assets are first recorded at: Multiple Choice cost minus residual (or salvage) value. the…

A: The tangible assets should be recorded at cost and it includes all the expenses which are incurred…

Q: From a consolidated point of view, when should the profit be recognized on intercompany sales of…

A: In case of inter company transactions, any unrealized profit arises, such profit should not be…

Q: In a lump-sum purchase, the single cost is allocated among the property assets equally.

A: Lump sum purchase means Buying of a different assets with the payment of single amount with no…

Q: The cost of a depreciable asset is referred to as the

A: The Answer :

Q: Sale of an capital assets is subject to

A: Option a is wrong because regular income tax is applied in case of income from salary, business or…

Q: -Select- assets include the rights established by law or contract to the future use of property…

A: According to the IFRS, intangible assets are identifiable, non-monetary assets without physical…

Q: Access the glossary (“Master Glossary”) to answer the ­following. a.    What does it mean to…

A: Answer: To capitalize an item means to use the item for the long term in the business and disclose…

Q: Classify each of the following costs associated with long-lived assets as one of the following

A: Since you have posted multiple questions, we will solve the first question for you. To get the…

Q: The difference between book value of the asset with the proceeds received from its sale, will result…

A: The book value of an asset is the value of the asset calculated by deducting the accumulated…

Q: right of use asset

A: Correct Answer :- C Sale price

Q: What is the goodwill arising from the acquisition?

A: A business combination occurs when an entity acquires control over an organization. Asset purchases…

Q: It is the initial cost of acquiring an asset, plus sales tax, transportation and normal costs of…

A: Cost of the asset is the cost which has been paid by the company in order to buy the asset and on…

Q: If a newly acquired asset is ‘held for sale’, the asset or disposal group will be measured at

A: A newly acquired asset is considered as a held for sale to a distributors when a non-current asset…

Q: What is a lump-sum purchase, and how is it accounted for?

A:

Q: Which of the following values for an intangible asset would a company capitalize and amortize? a.)…

A: Intangible assets are those assets which cannot be touched or seen but can be felt. Goodwill,…

Q: What is the total loss on realization of noncash assets?

A: Noncash assets are assets that would not be easily converted into cash by the company.

Q: Required In each of these cases, determine the amount of cost to be capitalized in the asset…

A: Cost allocation refers to the process which is used by the company to allocate the cost of product…

Q: Determine the initial cost of property, plant, and equipment and intangible assets acquired in…

A: Definition: Property, plant, and equipment: These assets are long-lived economic resources which are…

Q: Explain the nature of lump-sum purchases including the factor(s) to be considered and the…

A:

Q: What is the nature of a sale on consignment?

A: Consignment is a business sale transaction between a consignor and a consignee. Under consignment…

Q: Explain the method generally used to allocate the cost of a lump-sum purchase to the individual…

A: Assets:Assets are those items that provide value for money and future economic benefit for an…

Q: Distinguish between the “cost model” and “fair value” model of accounting for investment property.

A: Investment property is land or a building (including a part of a building) or both that is: →held to…

Q: As a result of the transaction, what is the effect on the profit or loss? what is the cost of the…

A: On the occasion of disposal/exchange/sale of an asset, the net income of the entity is impacted by…

Q: How do you determine the basis of acquired property in a like-kind exchange?  Give an example

A: Exchange of like-kind business/investment real property - The gain or loss on exchange of kind" real…

Q: List the priority of claims for the distribution of a liquidatedfirm’s assets.

A: Liquidation:  The liquidation process generally takes place when the firm is deemed to be far gone…

Q: Define the term the depreciable life of the asset?

A: Depreciation  is an accounting process through which allocation of an asset’s cost during its useful…

Q: Which of the following is considered not a Capital expenditure? a. Training costs b. Delivery costs…

A: Lets understand the basics. As per IAS 16 "Property, plant and equipment", initial cost for PPE…