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CHAPTER 8 operating(a) Assets: Property, Plant, and Equipment, and Intangibles QUESTIONS 1. operational summations include property, plant, and equipment and intangibles. Examples of pluss considered operating additions argon constructions, 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 advert sold to customers. The operating assets allow a company to stupefy a product efficiently and remain competitive with or so 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, evocation 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 building b ecause the beat allocated to a building represents a depreciable add, while the list allocated to land does not. 6.The worsening in expedientness of an operating asset is think 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 maintenance of the asset.

The depreciation order acting chosen should match the decline in usefulness of the asset to the periods benefited by the asset afterwards all factors have been interpreted into account. However, the company is not compulsory to use the same method for all dep reciable assets. 8.When the straight-! line method is used, the counterweight value should be deducted from the acquisition cost to determine the depreciable marrow to be allocated over the useful life of the asset. When the double-declining-balance method is used, the residual 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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