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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 pluss argon constructs, equipment, lower, land improvements, patents, copyrights, and goodwill. Operating assets are significant to the long-term future of the company because they are the assets used to capture a product or help oneself sold to customers. The operating assets allow a company to construct a product efficiently and remain competitive with many other firms. 2.The attainment cost of an asset includes all the be ordinarily necessary to acquire the asset and prepare it for its mean use. acquisition costs include the purchase price, freight costs, adroitness 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 bui lding because the beat allocated to a building represents a depreciable beat, while the do allocated to land does not. 6.The lineage in expedientness of an operating asset is refer 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 nutriment of the asset.

The depreciation regularity acting chosen should match the decline in usefulness of the asset to the periods benefited by the asset after(prenominal) all factors have been interpreted into account. However, the company is not needful to use the same method for all depreciable assets. 8.When th! e straight-line method is used, the equipoise value should be deducted from the acquisition cost to determine the depreciable totality to be allocated over the useful life of the asset. When the double-declining-balance method is used, the proportion 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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