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CHAPTER 8 operating(a) Assets: Property, Plant, and Equipment, and Intangibles QUESTIONS 1. in operation(p) summations include property, plant, and equipment and intangibles. Examples of pluss considered operating assets argon grammatical constructions, equipment, lower, land improvements, patents, copyrights, and goodwill. Operating assets be significant to the long-term future of the company because they are the assets used to capture a product or facilitate sold to customers. The operating assets allow a company to assert a product efficiently and remain competitive with nearly other firms. 2.The attainment cost of an asset includes all the be ordinarily necessary to acquire the asset and prepare it for its think use. acquisition costs include the purchase price, freight costs, initiation costs, taxes paying at the time of purchase, and repairs made to prepare the asset for use. 4.It is important to separately account for the cost of land and building because the beat allocated to a building represents a depreciable come, while the arrive allocated to land does not. 6.The turn in expedientness of an operating asset is link to physical deterioration factors, such as wear and tear. It is as well as related to obsolescence and technological factors and to the repair and nourishment of the asset.

The depreciation order acting chosen should match the decline in usefulness of the asset to the periods benefited by the asset by and by all factors have been interpreted into account. However, the company is not mandatory to use the same method for all depreciable a ssets. 8.When the straight-line metho! d is used, the ease value should be deducted from the acquisition cost to determine the depreciable core to be allocated over the useful life of the asset. When the double-declining-balance method is used, the symmetricalness value is not deducted. However, the asset should not be depreciated to an amount that is lower than the residual value. 9.Companies may use one method of...If you want to get a full essay, order it on our website: BestEssayCheap.com

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