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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 builds, equipment, lower, land improvements, patents, copyrights, and goodwill. Operating assets atomic number 18 significant to the long-term future of the company because they are the assets used to capture a product or perform sold to customers. The operating assets allow a company to put up a product efficiently and remain competitive with about 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, generalization 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 center, while the aggregate allocated to land does not. 6.The lineage in expedientness of an operating asset is pertain 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 support of the asset.

The depreciation system 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 call for to use the same m ethod for all depreciable assets. 8.W! hen the straight-line method is used, the equalizer value should be deducted from the acquisition cost to determine the depreciable meat to be allocated over the useful life of the asset. When the double-declining-balance method is used, the end 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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