Based on the knowledge that you have learned from this unit and the relevant accounting standards, answer the following questions. Your answers must demonstrate your own understandings and applications of relevant accounting standards, but not a direct quote of the standards. a.Use an example to explain what are included in the original cost of property, plant, and equipment when they are initially acquired. b. What is the basic principle for valuing property, plant, and equipment acquired in exchange for other non-monetary assets? c. Use an example to illustrate how gain or loss on disposal is calculated and recorded when an item of property, plant, and equipment is disposed of.
Based on the knowledge that you have learned from this unit and the relevant accounting standards, answer the following questions. Your answers must demonstrate your own understandings and applications of relevant accounting standards, but not a direct quote of the standards.
a.Use an example to explain what are included in the original cost of property, plant, and equipment when they are initially acquired.
b. What is the basic principle for valuing property, plant, and equipment acquired in exchange for other non-monetary assets?
c. Use an example to illustrate how gain or loss on disposal is calculated and recorded when an item of property, plant, and equipment is disposed of.
Accounting standard:
It is a collection of standards used to record all accounting transactions systematically. It is very important to keep track of all accounting transactions. These standards apply to all business transactions.
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