5&6) Question 5 2 pts The acquisition costs of property, plant, and equipment should include all...

Question

Question

5&6)

Question 5 2 pts The acquisition costs of property, plant, and equipment should include all normal, reasonable and necessary

business accounting

Add a comment Improve this question Transcribed image text

Answer 1

Answer #1

5) True

Reason: all the normal,reasonable and necessary cost are included in acquisition cost because it is the overall cost which is necessary to put the asset in use.

6) False

Reason:the cost of replacing an engine is not an ordinary maintenance rather it is addition or replacement of part of asset because it is of materialistic value to the asset.

Add a comment

Answer 2

Similar Homework Help Questions

What costs are included on the balance sheet related to the acquisition of property, plant, and...

What costs are included on the balance sheet related to the acquisition of property, plant, and equipment?Accounting issues associated with long-term assets include determining cost, depreciation or amortization as well as accounting for repairs and maintenance expenses. What costs are included on the balance sheet related to the acquisition of property, plant, and equipment?
Examples of pre-acquisition costs include costs to lease the property. Question 5 Not yet answered Points...

Examples of pre-acquisition costs include costs to lease the property. Question 5 Not yet answered Points out of 1.00 Select one: O True O False P Flag question
TRUE/FALSE Long-lived assets that are tangible in nature, used in the operations of the business, and...

TRUE/FALSE Long-lived assets that are tangible in nature, used in the operations of the business, and not held for sale in the ordinary course of business are called fixed assets. True False The acquisition costs of property, plant, and equipment should include all normal, reasonable and necessary cost to get the asset in place and ready for use. True False When land is purchased to construct a new building, the cost of removing any structures on the land should be...

10&11) Question 10 2 pts When old equipment is traded in for a new equipment, the...

10&11) Question 10 2 pts When old equipment is traded in for a new equipment, the difference between the list price and the trade in allowance is called boot. True False Question 11 2 pts Which of the following is an example of a capital expenditure? cleaning the carpet in the front room tune-up for a company truck replacing an engine in a company car replacing all burned-out light bulbs in the factory
Costs incurred by Mills Company that relate to its property, plant, and equipment assets might be...

Costs incurred by Mills Company that relate to its property, plant, and equipment assets might be recorded in one of the five following accounts: a. an expense account b. Accumulated Depreciation c. Land d. Building e. Equipment Required: For each of the costs identified below, indicate the type of account in which the cost should be recorded by placing the appropriate letter in the space provided. ____ 25. The legal fees associated with the acquisition of land. ____ 26....
The cost of an asset includes all normal and reasonable 2 points expenditures necessary to get...

The cost of an asset includes all normal and reasonable 2 points expenditures necessary to get it in place and ready for its intended use.* True False

Question 1 (1 point) The fair value of the asset, debt, or equity securities given in...

Question 1 (1 point) The fair value of the asset, debt, or equity securities given in a noncash acquisition should determine the value of the consideration received. True False Question 2 (1 point) The interest capitalization period for a self-constructed asset ends either when the asset is substantially complete and ready for use or when interest costs no longer are being incurred. True False Question 3 (1 point) A distinguishing characteristic of intangible assets is that the extent and timing...
1.companies generally do a fixed asset inventory including all property plant and equipment each year. a....

1.companies generally do a fixed asset inventory including all property plant and equipment each year. a. True b. False 2. The best evidence about fair value is obtained when there is an active market for the asset and the value of the asset may be determined by reference to sales of identical assets. a. True b. False 3. Companies generally do a fixed asset inventory including all property plant and equipment each year. a. True b.False 4. Auditing depreciation expense...
help me asap 534 Chapter 10 Acquisition and Disposition of Property, Plant,, and Equipment Purchase Cash...

help me asap 534 Chapter 10 Acquisition and Disposition of Property, Plant,, and Equipment Purchase Cash paid for equipment, including sales tax of $5,000 Freight and insurance cost while in transit Cost of moving equipment into place at factory Wage cost for technicians to test equipment Insurance premium paid during first year of operation on this equipment Special plumbing fixtures required for new equipment Repair cost incurred in first year of operations related to this equipment $105,000 2,000 3,100 4,000...

Question 4 (1 point) Which of the following is a characteristic of property, plant and equipment?...

Question 4 (1 point) Which of the following is a characteristic of property, plant and equipment? OIt is intangible It is used in the operations of a business It is held for sale in the ordinary course of business It is a long-term investment Question 5 (1 point) Which of the following best describes accumulated depreciation? It is used to show the amount of cost expiration of intangibles It is the same as depreciation expense It is a contra asset...

5&6) Question 5 2 pts The acquisition costs of property, plant, and equipment should include all...

Homework Answers

Add Answer to:
5&6) Question 5 2 pts The acquisition costs of property, plant, and equipment should include all...

Post as a guest

Earn Coins

What costs are included on the balance sheet related to the acquisition of property, plant, and...

Examples of pre-acquisition costs include costs to lease the property. Question 5 Not yet answered Points...

TRUE/FALSE Long-lived assets that are tangible in nature, used in the operations of the business, and...

10&11) Question 10 2 pts When old equipment is traded in for a new equipment, the...

Costs incurred by Mills Company that relate to its property, plant, and equipment assets might be...

The cost of an asset includes all normal and reasonable 2 points expenditures necessary to get...

Question 1 (1 point) The fair value of the asset, debt, or equity securities given in...

1.companies generally do a fixed asset inventory including all property plant and equipment each year. a....

help me asap 534 Chapter 10 Acquisition and Disposition of Property, Plant,, and Equipment Purchase Cash...

Question 4 (1 point) Which of the following is a characteristic of property, plant and equipment?...

5&6) Question 5 2 pts The acquisition costs of property, plant, and equipment should include all...

Homework Answers

Add Answer to: 5&6) Question 5 2 pts The acquisition costs of property, plant, and equipment should include all...

Post as a guest

Earn Coins

Add Answer to:
5&6) Question 5 2 pts The acquisition costs of property, plant, and equipment should include all...