Question

Indicate whether each of the following items is property, plant, and equipment (write “PPE”), a natural resource (“NR”), or an intangible asset (“I”). If the item does not fit any of these categories, write “NA” (not applicable) in the space provided.

a) ________ Building

b) ________ Cost of goods sold

c) ________ Franchise

d) ________ Diamond mine

e) ________ Inventory

f) ________ Land

g) ________ Mining equipment

h) ________ Note receivable, due in three years

i) ________ Parking lot

j) ________ Patent

k) ________ Research costs

l) ________ Trademark

Answer 1

The answer to the above question is as follows -

1. Building - "PPE" - Building is a part of property plant and equipment.

2.Cost of Goods Sold - "NA" - Cost of Goods Sold is not in any category of K, therefore NA.

3. Franchise - "I" - Franchise is a part of an Intangible asset.

4. Diamond Mine - "NR" - Diamond Mine is a part of Natural Resource.

5. Inventory - "NA" - Inventory is not in any category of K, therefore NA.

6.Land - "PPE" - Land is a part of property plant and equipment.

7. Mining Equipment - "PPE" - Mining Equipment is a property plant and equipment.

8. Note Receivable - "NA" - Notes Receivable is not in any category of K, therefore NA

9. Parking Lot - "PPE" - The Parking Lot is a part of the property plant and equipment.

10. Patent- "I" - Patent is a part of an Intangible asset.

11. Research Costs - "NA" - Research Costs is not in any category of K, therefore NA.

12. Trademark "I" - Trademark is a part of an Intangible asset.