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CHAPTER 8 run(a) Assets: Property, Plant, and Equipment, and Intangibles QUESTIONS 1.Operating summations include property, plant, and equipment and intangibles. Examples of pluss considered operating assets are buildings, equipment, lower, shoot improvements, patents, copyrights, and goodwill. Operating assets are large to the long-term future of the confederacy because they are the assets used to let a yield or serve sold to customers. The operating assets exclusivelyow a order to produce a product efficiently and remain emulous with some other firms. 2.The progression cost of an asset includes all the cost ordinarily requirement to acquire the asset and dress it for its intended use. acquisition costs include the purchase price, encumbrance costs, installation costs, taxes paying at the time of purchase, and regulars made to condition the asset for use. 4.It is important to apiece account for the cost of land and building because the beat allocated to a building represents a depreciable amount, plot of ground the amount allocated to land does non. 6.The turn down in expedientness of an operating asset is colligate to physical stultification factors, such as violate and tear. It is as well as related to obsolescence and technological factors and to the repair and maintenance of the asset.

The depreciation system acting acting chosen should oppose the decline in gain of the asset to the periods benefited by the asset after all factors fork everywhere been interpreted into account. However, the company is not required to use the equal manner for all depreciable assets. 8.When the straight-line method is used, the relaxation value should be deducted from the acquisition cost to crack the depreciable amount to be allocated over the useful life of the asset. When the double-declining-balance method is used, the residual 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 1 method of...If you want to give birth a full essay, order it on our website: Ordercustompaper.com

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