What is meant by the “depreciable cost” of a plant asset?

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: The difference between cost of the asset and residual value is known as a . Depletion b . Salvage…

A: Depreciation: Depreciation means the reduction in the value of an asset over the life of the assets…

Q: Depreciation is the process of allocating the cost of a plant asset to expense in the accounting…

A: Plant is purchases in the year of its purchase. But the benefit from the plant comes in later years…

Q: Identify the various costs included in the initial cost of property, plant, and equipment, natural…

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Q: What is the general rule for cost inclusion for plant assets?

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Q: With reference to IAS 16 (Property, Plant and Equipment), discuss the differences between “the cost…

A: IAS 16 relates to the accounting for property, plant, and equipment unless another standard requires…

Q: How can be Preservation and Maintenance of the Property can be done?

A: Preservation and Maintenance of Property can be done as follows: The borrower of the property…

Q: What is the process of allocating the cost of natural resources to expense as they are used?

A: Natural resources usually include oil reserves, coal deposits, and mineral deposits. The natural…

Q: What is the criterion a company uses to decide whether to include an expenditure in the cost of…

A: The criterion used by a company to include a cost in the cost of an asset is whether it is necessary…

Q: Explain the differences between depreciation expense and impairment loss of property, plant and…

A: The difference between Depreciation and impairment is as follows: Depreciation Impairment It is…

Q: What are plant assets?

A: Solution:- Plant assets means as follows under:-

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: What characteristics of a plant asset make it different from other assets?

A: Assets means anything which will enable a business enterprise to get cash or benefit in…

Q: How should intangible assets and property, plant, and equipment (PP&E) be treated when their service…

A: The Answer

Q: Why are the costs of plant/long term assets recovered through depreciation vs. expensed out during…

A: Introduction: Depreciation refers to two aspects of the same concept: first, the actual decrease in…

Q: Depreciation is the process of allocating the cost of a plant asset to expense in the accounting…

A: Plant means the fixed assets which is used in business for furtherance of business and not held for…

Q: Discuss the factors that influence the estimation of service life for a depreciable asset.

A: Fixed asset:It refers to the long-term assets having a useful life of more than a year which is,…

Q: Which of the following is not a major characteristic of a plant asset? Possesses physical substance…

A: An asset is a resource with economic value that a firm controls in lieu of that it will provide a…

Q: Why are property, plant and equipment capitalized as an asset and not expensed

A: Property, Plant and Equipment are tangible assets of the business which provides benefit to the…

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: Explain the concept of VALUE IN USE. Why can it be a basis for recoverable amount of an item of…

A: Value in use means the asset’s net worth for the present time. Value in use is used to take decision…

Q: On your own words, describe the methods that companies can implement to depreciate plant assets.

A: The methods to depreciate the plant assets are as follows, Straight Line Depreciation: This is also…

Q: How do you figure units-of-production method depreciation?

A: The business entities are required to charge the depreciation expense on their assets so that the…

Q: A gain or loss on disposal of a plant asset is determined by comparin O replacement cost of the…

A: In the business world, the term "book value" was coined to indicate the current value of a…

Q: What is a portion of plant asset cost allocated as expense for the period? What is the difference…

A: Carrying Amount: The carrying amount is the purchase price less impairment and depreciation and is…

Q: How can I compute the acquasition of plant assets?

A: The acquisition cost incurred on a plant asset is the cost expended to acquire and place the asset…

Q: For what reasons are plant assets retired? Define inadequacy,supersession, and obsolescence.

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Q: Which of the following is not a major characteristic of a plant asset? Long-term in nature Possesses…

A: We should first understand the meaning of plant asset first. Plant asset is also known as property,…

Q: The unrealized gains and losses from intercompany transactions involving plant assets might be…

A: Depreciable assets are those assets that are eligible for taxation and accounting purposes for…

Q: Classify the following fixed costs as normally being either committed or discretionary:a.…

A: Committed fixed costs are those costs that can not be reduced even for short periods of time without…

Q: Why It’s important to distinguish between the cost of land and the cost of land improvement?

A: The cost of land and cost of land improvements are to distinguished and are to be recorded…

Q: Explain what is meant by the impairment of the value of property, plant, and equipment and…

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

Q: Explain the process of ‘impairment of an asset’ and its definition? Explain how to account for an…

A: Impairment of assets means reducing the cost of assets when carrying amount is more than value in…

Q: The cost of intangible asset acquired

A: As per IAS 38, Intangible assets are those assets which states the requirements of accounting for…

Q: Plant assets are recorded at historical cost. What does the historical cost of a plant asset…

A: Plant assets are recorded at historical cost. Historical cost includes: Asset purchase price,…

Q: What is the process of allocating the cost of a plant asset over its useful life called?

A: Depreciation:Depreciation is the reduction in the value of an asset over its useful life. An asset…

Q: How is gain or loss determined when disposing of plant assets? What situation constitutes a gain?…

A: Disposal of plant assets, may result in gain or loss.

Q: What is the process by which businesses spread the allocation of an intangible asset’s cost over its…

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Q: What are the elements of cost of an item of property, plant and equipment

A: Property, plant, and equipment are the fixed assets that are reported on the assets side of the…

Q: In calculating depreciation, both plant asset cost and useful life are based on estimates.

A: Answer

Q: Property plant and equipment are considered what type of asset?

A: basically classification of asset is done based on the nature of the asset .there are two types of…

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…

Q: Why are the cost of plant/long term assets recovered through depreciation vs. expensed out during…

A: Answer : The fixed assets are long-run assets. they assist within the production of goods and…