The Cost of a Plant Asset Includes the Following:

Cost of the asset and the. All of these are included.

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The acquisition cost of a plant asset is the amount of cost incurred to acquire and place the asset in operating condition at its proper location.

. Factors considered in determining an intangible assets useful life include all of the following except a. The purchase also involves 1000 in fees. The cost of an intangible asset includes all of the following except a.

An asset classified under property plant and equipment is measured initially at cost. This asset category includes the cost of parking lots. Even if the market value of the asset changes over time accountants continue to report the acquisition cost in the asset account in subsequent periods.

Many different costs can be classified as capitalized costs. Construction cost of the item which can include labor and employee benefits. Interest costs incurred during the period required to bring an asset to the condition and location necessary for.

The cost of a plant asset consists of all necessary and reasonable expenditures to acquire it and prepare it for its intended use. The cost of building includes all of the following except a. Land purchases often involve real estate commissions legal fees bank fees title search fees and similar expenses.

Expenditure for service equipment and fixture made a permanent part of the structure d. Administrative and other general overhead should be excluded. A Amounts paid.

Any renovating or remodelling cost incurred to put the building purchased in condition for the intended use b. Costs directly attributable to bringing the asset to the location and condition for the intended use include all of the following except answer choices Cost of employee benefit not arising directly from the construction and acquisition of property plant and equipment. Purchased land and an existing building for 200000.

The cost of plant assets should include all of the normal and reasonable expenditures necessary to get the asset in place and ready for its intended use including repairs to damages incurred after installation. More specifically assign the following costs to a fixed asset. Property plant equipment PPE PPE Property Plant and Equipment PPE Property Plant and Equipment is one of the core non-current assets found on the balance sheet.

A plant asset is an asset with a useful life of more than one year that is used in producing revenues in a businesss operations. QUESTION 1 Which of the following is included in the cost of a plant asset. Directly attributable costs include costs of for example site preparation initial delivery and handling installation professional fees eg those of architects.

Plant assets other than land are depreciated over their useful. A change in the measurement basis. None among the given choices.

The cost of property plant and equipment includes the purchase price of the asset and all expenditures necessary to prepare the asset for its intended use. The Cost of Property Plant Equipment. PPE is impacted by Capex.

For example a company purchases of a piece of equipment with a price tag of 20000. None among the given choices. Purchase price of the item and related taxes.

To depreciate machinery and equipment you can use the following depreciation methods. The change from cost model to revaluation model in measuring property plant and equipment. A Amounts paid to ready the asset for its intended use B Regular maintenance cost C Normal repair cost D Wages of workers who use the asset Answer.

Any renovating or remodelling cost incurred to put the building purchased in a condition for the intended use c. The change in accounting policy includes all of the following except. Original cost includes all quantifiable facets of a purchased asset.

Up to 256 cash back b. All of these costs may be considered ordinary and necessary to get the land ready for its intended use. The book value of a plant asset is the difference between the.

Replacement cost of the asset and its historical cost. Original cost of the asset with the proceeds received from its sale. REASON - As per AS -10 Valuation of Fixed Asset Cost of fixed asset comprises -Purchase Price Invoice Price except refundable taxes.

Determining the Cost of Plant Assets 399 The cost principle requires that companies record plant assets at costThus Rent-A-Wreck records its vehicles at costCost consists of all expendi-tures necessary to acquire the asset and make it ready for its intended use. It says that the components of the costs of fixed assets include. Book value of the asset with the assets original cost.

Plant assets are also known as fixed assets. Some costs are land improvements. The initial adoption of an accounting policy to carry asset at revalued amount.

The change from cost model to revaluation model in measuring property plant and equipment. When depreciating plant assets use the entire cost of plant assets when calculating depreciation. Direct Cost of bringing asset to its working condition.

Inbound freight and handling. A amounts paid to make the asset ready for its intended use B regular repair and maintenance costs C replacement of damaged parts of the asset D wages of workers who use the asset in normal operations A QUESTION 2 Masonry Construction Group paid 12000 for a. Plant assets are recorded at their cost and depreciation expense is recorded during their useful lives.

Cost includes all normal reasonable and necessary expenditures to obtain the asset. The change in accounting policy includes all of the following except. Also included are site preparation costs like grading and draining or the cost to raze an old structure.

For example the cost of factory machinery includes the purchase price. Purchase price Import duties and non-refundable taxes paid on it Freight and handling expenses Costs of dismantling removing or clearing a site for installation Directly attributable cost of bringing the assets to working condition Costs of site preparation Initial delivery and handling costs. Book value of the asset with the proceeds received from its sale.

The initial adoption of an accounting policy to carry asset at revalued amount. This amount includes the purchase price and any directly attributable costs of bringing the asset to working condition for its intended use. The expected use of the asset.

These costs include the cost of the land title fees legal fees survey costs and zoning fees. Expense on Commisioning and Start Up For Example - test run site preparation. A change in the measurement basis.

91-10 Which of the following is included in the cost of a plant asset.

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