Why might the actual holding period for a property be different from the holding period that was anticipated when the property was purchased?

Q: What are the major factors considered in determiningwhat depreciation method to use?

A: Depreciation: Depreciation refers to the reduction in the monetary value of a fixed asset due to its…

Q: When an item of property, plant, and equipment is disposed of, how is gain or loss on disposal…

A: When an item of property, plant and equipment is disposed of, then gain or loss is determined by…

Q: What are the benefits of the book depreciation? When is it used?

A: Depreciation: Depreciation refers to the reduction in the monetary value of a fixed asset due to its…

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

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

Q: WHAT IS LEGAL LIFE OF THE ASSET?

A: SOLUTION- LEGAL LIFE OR USEFUL LIFE OF ASSET- AN ASSET LEGAL LIFE IS THE PERIOD OF TIME (OR TOTAL…

Q: how the value of the property is established through an appraisal?

A: Appraisal of a property is done to understand the highest probable price for a property and to…

Q: fair value model for investment property differ from the revaluation model for PPE

A: Fair value model and revaluation model are methods of valuation of non-current assets as per…

Q: The depreciation procedures that apply to the main kinds of depreciable assets in general?

A: Depreciation is an accounting method for allocating the cost of a tangible or physical asset over…

Q: Why allow the fair value option for financial assets and liabilities and not for, say, buildings or…

A:

Q: "Depreciation is a valuation process that results in the reporting of the fair value of the asset.”…

A: Fixed assets: These are the assets which were used in the business for more than one year. These…

Q: Over what period should an addition to an existing long-lived asset be depreciated?Explain.

A:

Q: What is the purpose of depreciation

A: Depreciation is an accounting system for spreading out the expense of a tangible item over the…

Q: Are litigation costs to defend an intangible asset capitalized or expensed? Explain your answer.

A: Litigation Costs should be capitalised and amortised over the remaining useful life of the related…

Q: why is land being depreciated

A: Given in the question: Land was purchased on September 1, 2016 for $150,000 for cash by Hand Creamy…

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: Why would refinancing be an alternative to sale of the property?

A: Individuals always buy the properties taking the mortgage because payment for buying the property…

Q: Under a property policy,  insurable interest must exist at which of the following times?  when the…

A: Insurable interest is a type of insurance which protect the policy holder from the financial loss…

Q: A transfer from investment property carried at fair value to owner-occupied property shall be…

A: A shift from investment property to owner-occupied property must be accounted for will be…

Q: What is the carrying value of Land after the recognition of the impairment loss?

A:

Q: Why is there a need to properly classify a property whether it is an investment or a property, plant…

A: Before making application treatment on property needs to be classification  It will makes proper…

Q: What is the motivation for a sale-leaseback of the land?

A: Lease is the agreement between the two parties that is lesser and lessee where lesser allows the…

Q: What factors would result in property increasing in value over a holding period?

A: One holding period is the length of time a creditor retains or the time between purchasing and…

Q: w to determine what depreciation should be used

A: Solution Concept Depreciation                 Depreciation refers to the expense that is recorded…

Q: Are Inventories depreciable property? Why?

A: Depreciable property means an asset which is eligible to book depreciation for accounting and tax…

Q: Why was land registration a critical issue in maintaining property rights?

A: The primary goal of property rights, as well as their primary accomplishment, is to eliminate…

Q: What are the requirements of depreciating an asset?

A: Depreciation is a non-cash expense which is charged against the use of the fixed assets of the…

Q: Land is not considered as a depreciable property.Why

A: Fixed assets:   These are the types of assets owned by the business that is expected to provide an…

Q: Describe the method of the asset's depreciation?

A: Methods of Depreciation: Depreciation refers to the reduction in the monetary value of a fixed asset…

Q: Determine an asset's depreciable life?

A: A tangible asset is a substantial resource. Tangible resources incorporate fixed resources including…

Q: Describe why allow the fair value option for financial assets and liabilities and not for buildings…

A:

Q: Under what conditions should financing be explicitly considered when estimating the value of a…

A: Before buying a property, estimating its value is necessary. Because only after estimating the value…

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 are the depreciation processes that apply to the most common types of depreciable assets in the…

A: Depreciation is an accounting word that refers to the process of spreading the cost of a tangible or…

Q: TRUE OR FALSE? An item of property plant and equipment can be asset held for sale.

A: The assets of the business are classified as current assets, fixed assets, tangible assets or…

Q: What is the cost of right of use of asset?

A: Given in the question: Sales Price 20,000,000 Fair Value 18,000,000 Carrying Amount…

Q: What is the Importance of the Residual Value of Real Estate?

A: RESIDUAL TECHNIQUE IN REAL ESTATE- Residual techniques in business land valuation square measure…

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: From an economic point of view, which activity is regarded as an undertaking to prevent a loss in…

A: Activities undertaken by a company can be divided in to two types. They are activities involving…

Q: hen should you present your biological asset as current or non-current asset? Or what is/are the…

A: Biological assets are the ones that are counted as resources in the agriculture business. They are…

Q: True or False?

A: Meaning of Right of use asset The right of use asset is recorded by the lessee in the balance…

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: What do you mean when you say the depreciable life of an asset is defined?

A: The question explains about the depreciable life of an asset is defined