Describe the acquisition cost of a plant asset.

Question

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Answer 1

Question

Chapter 9, Problem 1SSQ

To determine

Describe the acquisition cost of a plant asset.

Expert Solution & Answer

Answer to Problem 1SSQ

The reasonable and necessary costs incurred to prepare the asset for its intended use.

Explanation of Solution

Acquisition Cost:

Acquisition cost is the total cost (any cash expensed to prepare the asset for its intended use) of the asset incurred to obtain an asset. Acquisition cost is also called as historical cost or original cost.

Plant Assets:

Plant assets are the long-term assets used by the company, which have physical existence, and can be seen, touched and felt. Some of the examples of the plant assets include equipment, buildings, furniture and fixtures, plant, property, and land.

From the above explanation it is clear that option (a), (b) and (d) are incorrect, only option (c) is correct.

Conclusion

Therefore, the correct answer is option c.

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Answer 2

Question

Chapter 9, Problem 1SSQ

To determine

Describe the acquisition cost of a plant asset.

Expert Solution & Answer

Answer to Problem 1SSQ

The reasonable and necessary costs incurred to prepare the asset for its intended use.

Explanation of Solution

Acquisition Cost:

Acquisition cost is the total cost (any cash expensed to prepare the asset for its intended use) of the asset incurred to obtain an asset. Acquisition cost is also called as historical cost or original cost.

Plant Assets:

Plant assets are the long-term assets used by the company, which have physical existence, and can be seen, touched and felt. Some of the examples of the plant assets include equipment, buildings, furniture and fixtures, plant, property, and land.

From the above explanation it is clear that option (a), (b) and (d) are incorrect, only option (c) is correct.

Conclusion

Therefore, the correct answer is option c.

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Answer 3

Question

Chapter 9, Problem 1SSQ

To determine

Describe the acquisition cost of a plant asset.

Expert Solution & Answer

Answer to Problem 1SSQ

The reasonable and necessary costs incurred to prepare the asset for its intended use.

Explanation of Solution

Acquisition Cost:

Acquisition cost is the total cost (any cash expensed to prepare the asset for its intended use) of the asset incurred to obtain an asset. Acquisition cost is also called as historical cost or original cost.

Plant Assets:

Plant assets are the long-term assets used by the company, which have physical existence, and can be seen, touched and felt. Some of the examples of the plant assets include equipment, buildings, furniture and fixtures, plant, property, and land.

From the above explanation it is clear that option (a), (b) and (d) are incorrect, only option (c) is correct.

Conclusion

Therefore, the correct answer is option c.

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Answer 4

Question

Chapter 9, Problem 1SSQ

To determine

Describe the acquisition cost of a plant asset.

Expert Solution & Answer

Answer to Problem 1SSQ

The reasonable and necessary costs incurred to prepare the asset for its intended use.

Explanation of Solution

Acquisition Cost:

Acquisition cost is the total cost (any cash expensed to prepare the asset for its intended use) of the asset incurred to obtain an asset. Acquisition cost is also called as historical cost or original cost.

Plant Assets:

Plant assets are the long-term assets used by the company, which have physical existence, and can be seen, touched and felt. Some of the examples of the plant assets include equipment, buildings, furniture and fixtures, plant, property, and land.

From the above explanation it is clear that option (a), (b) and (d) are incorrect, only option (c) is correct.

Conclusion

Therefore, the correct answer is option c.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 9, Problem 1SSQ

To determine

Describe the acquisition cost of a plant asset.

Expert Solution & Answer

Answer to Problem 1SSQ

The reasonable and necessary costs incurred to prepare the asset for its intended use.

Explanation of Solution

Acquisition Cost:

Acquisition cost is the total cost (any cash expensed to prepare the asset for its intended use) of the asset incurred to obtain an asset. Acquisition cost is also called as historical cost or original cost.

Plant Assets:

Plant assets are the long-term assets used by the company, which have physical existence, and can be seen, touched and felt. Some of the examples of the plant assets include equipment, buildings, furniture and fixtures, plant, property, and land.

From the above explanation it is clear that option (a), (b) and (d) are incorrect, only option (c) is correct.

Conclusion

Therefore, the correct answer is option c.

Answer 6

Chapter 9, Problem 1SSQ

To determine

Describe the acquisition cost of a plant asset.

Expert Solution & Answer

Answer to Problem 1SSQ

The reasonable and necessary costs incurred to prepare the asset for its intended use.

Explanation of Solution

Acquisition Cost:

Acquisition cost is the total cost (any cash expensed to prepare the asset for its intended use) of the asset incurred to obtain an asset. Acquisition cost is also called as historical cost or original cost.

Plant Assets:

Plant assets are the long-term assets used by the company, which have physical existence, and can be seen, touched and felt. Some of the examples of the plant assets include equipment, buildings, furniture and fixtures, plant, property, and land.

From the above explanation it is clear that option (a), (b) and (d) are incorrect, only option (c) is correct.

Conclusion

Therefore, the correct answer is option c.

Answer 7

Chapter 9, Problem 1SSQ

To determine

Describe the acquisition cost of a plant asset.

Answer 8

Expert Solution & Answer

Answer to Problem 1SSQ

The reasonable and necessary costs incurred to prepare the asset for its intended use.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Explanation of Solution

Acquisition Cost:

Acquisition cost is the total cost (any cash expensed to prepare the asset for its intended use) of the asset incurred to obtain an asset. Acquisition cost is also called as historical cost or original cost.

Plant Assets:

Plant assets are the long-term assets used by the company, which have physical existence, and can be seen, touched and felt. Some of the examples of the plant assets include equipment, buildings, furniture and fixtures, plant, property, and land.

From the above explanation it is clear that option (a), (b) and (d) are incorrect, only option (c) is correct.