Normally, depreciation should not be recognized on plant assets during their construction period. What is the exception? Select the correct response: When the length of the construction period is unduly prolonged. When evidence indicates that operations will not produce sufficient revenue to cover all costs including deprecation. When partial use of the asset can be identified with an income during their construction period and corresponding costs can be ascertained. When the carrying amount of the property cannot be realized through sale.

Normally, depreciation should not be recognized on plant assets during their construction period. What is the exception? Select the correct response: When the length of the construction period is unduly prolonged. When evidence indicates that operations will not produce sufficient revenue to cover all costs including deprecation. When partial use of the asset can be identified with an income during their construction period and corresponding costs can be ascertained. When the carrying amount of the property cannot be realized through sale.

Auditing: A Risk Based-Approach (MindTap Course List)

11th Edition

ISBN:9781337619455

Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Chapter12: Auditing Long-lived Assets And Merger And Acquisition Activity

Section: Chapter Questions

Problem 8CYBK

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