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Are additional costs of plant assets that provide benefits extending beyond the current period and i?

Looking for an answer to the question: Are additional costs of plant assets that provide benefits extending beyond the current period and i? On this page, we have gathered for you the most accurate and comprehensive information that will fully answer the question: Are additional costs of plant assets that provide benefits extending beyond the current period and i?

Process of allocating the cost of an intangible asset to expense over its estimated useful life. Expenditures to make a plant asset more efficient or productive; also called improvements. Asset's acquisition costs less its accumulated depreciation (or depletion, or amortization).


Plant assets should be recorded at cost, including all normal and reasonable expenditures necessary to get the asset in place and ready for its intended use. This would include which of the following costs? _____ assets are assets used in a company's operations that have a useful life of more than one accounting period.


Straight-line depreciation is calculated by taking cost minus (salvage/market) value divided by useful life. True or false: 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.


True or false: 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. Which of the following situations will result in recognizing a gain on sale of a plant asset?

Is the process of allocating the cost of a plant asset to expense while it is in use?

Amortization is: The systematic allocation of the cost of an intangible asset to expense over its estimated useful life. The process of allocating to expense the cost of a plant asset to the accounting periods benefiting from its use.


Which one of the following costs will not be included in the cost of equipment?

Land. Which one of the following costs will not be included in the cost of equipment? Annual insurance. ... (All costs necessary to get the land ready to use should be capitalized as part of the cost of the land.


Are expenditures making a plant asset more efficient or productive?

Improvements Improvements (betterments) are expenditures to make a plant asset more efficient or productive. They are capitalized (added to the cost of the plant asset). Extraordinary repairs extend the asset's life beyond its original estimated useful life. Their costs are capitalized or charged to accumulated depreciation.


Are plant assets Current assets?

No, plants and plant assets are not current assets. A current asset is any asset that will provide an economic benefit for or within one year. Plants are a part of the property, plants, and equipment, or PP&E, account. PP&E has a useful life longer than one year, so plants are considered a non-current asset.


What is the useful life of a plant asset?

one year A plant asset is an asset with a useful life of more than one year that is used in producing revenues in a business's operations. Plant assets are also known as fixed assets. Plant assets are recorded at their cost and depreciation expense is recorded during their useful lives.


Are expenditures that extend the assets useful life beyond its original estimate?

Capital expenditures are expenditures that keep assets in normal, good operating condition. Extraordinary repairs are expenditures extending the asset's useful life beyond its original estimate, and are capital expenditures because they benefit future periods.


Are additional costs of plant assets?

(Revenue/Capital) (1) expenditures are additional costs of plant assets that do not materially increase the asset's life or productive capabilities.


What are plants assets?

Plant assets, also known as fixed assets, are any asset directly involved in revenue generation with a useful life greater than one year. Named during the industrial revolution, plant assets are no longer limited to factory or manufacturing equipment but also include any asset used in revenue production.


What are the characteristics of plant assets that distinguish them from other assets?

1. The major characteristics of plant assets are (1) that they are acquired for use in operations and not for resale, (2) that they are long-term in nature and usually subject to depreciation, and (3) that they have physical substance. 2.


What are examples of plant assets?

Examples of plant assetsMachinery and equipment.Land.Land maintenance.Construction.Site renovation.Facilities.Furniture and fixtures.Office equipment.


How do plant assets differ from other assets such as inventory?

First, plant assets are used in operations. This makes them different from, for instance, inventory that is held for sale and not used in operations. The second important feature is that plant assets have useful lives extending over more than one accounting period.


Is the process of allocating the cost of a plant asset?

¨ Depreciation is the process of allocating to expense the cost of a plant asset over its useful (service) life in a rational and systemic manner.


What is a plant asset?

Plant assets are a group of assets used in an industrial process, such as a foundry, factory, or workshop. These assets are a subset of the fixed assets classification, which includes such other asset types as vehicles, office equipment, and intangible assets.


Are additional costs of plant assets that provide benefits extending beyond?

Capital Expenditures, also called balance sheet expenditures, are additional costs of plant assets that provide benefits extending beyond the current period.


Why are plant assets reported at historical cost what costs are included in the cost of plant assets?

Plant assets are long-lived, tangible assets used in the operation of a business. ... The historical cost of a plant asset includes the purchase price plus taxes, purchase commissions, and all other amounts paid to ready the asset for its intended use.


What does the cost of a plant asset include?

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. Cost includes all normal, reasonable, and necessary expenditures to obtain the asset and get it ready for use.


When can interest be included in the acquisition cost of a plant asset A?

Interest expense should be included in the cost of acquiring an asset during the period when an entity is carrying out those activities needed to bring the asset to its designated condition and location.


What statement is true about additions to plant assets?

Which statement is true about additions to plant assets? Their cost is immediately expensed.


When it is no longer useful to the company and it has no market value?

A plant asset is (depreciation/discarded/obsolete) when it is no longer useful to the company, and it has no market value. A company sells a machine that cost $7,000 for $500 cash. The machine had $6,500 accumulated depreciation.


What best describes additional costs of plant assets that provide material benefits extending beyond the current period?

If our estimate of an asset's useful life or salvage value changes, what should we do? ... Additional costs of plant assets that provide material benefits extending beyond the current period; also called balance sheet expenditures.

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Stuart Morrison

Hi everyone, my name is Stuart Morrison and I am the editor-in-chief and author of the Answeregy website. I am 35 years old and live in Miami, Florida. From an early age I loved to learn new things, constantly reading various encyclopedias and magazines. In 1998 I created my first Web site, where I posted interesting facts which you could rarely learn elsewhere. Then, it led me to work as a content manager for a large online publication. I always wanted to help people while doing something I really enjoyed. That's how I ended up on the Answeregy.com team, where I... Read more