What was the acquisition cost of the equipment?

Q: what do we do with depreciation?

A: Depreciation expense is a non-cash expense that decreases the net income and hence the income tax…

Q: When an item of property, plant, and equipment is disposed of, how is gain or loss on disposal…

A: When an item of property, plant and equipment is disposed of, then gain or loss is determined by…

Q: What is an intangible asset? Provide some examples.

A: Intangible assets: These are the long-term assets which are not physical in nature, but possess…

Q: how the value of the property is established through an appraisal?

A: Appraisal of a property is done to understand the highest probable price for a property and to…

Q: how did you get the Equipment depreciation expense

A: Depreciation is an account used to allocate capital expenditure on assets over the period of useful…

Q: What are the differences between the cost and sales comparison approaches to appraising property?

A: If the cost approach is used, the appraiser set up an value for the location on which the…

Q: How can we determine the Acquisition of Fixed Assets?

A: Fixed Assets- Fixed Assets are those assets which are acquired for the purpose of: production or…

Q: How can be Preservation and Maintenance of the Property can be done?

A: Preservation and Maintenance of Property can be done as follows: The borrower of the property…

Q: Explain the difference in the accounting treatment of costs incurred to purchaseintangible assets…

A:

Q: What is the process of allocating the cost of natural resources to expense as they are used?

A: Natural resources usually include oil reserves, coal deposits, and mineral deposits. The natural…

Q: Which one of the following is an intangible asset?

A: We know that as per IAS 38 vis a vis IFRS 38 an intangible asset is an identifiable non monetary…

Q: Define the term Estimated salvage value?

A: Estimated salvage value It is the evaluated book value of an asset after depreciation is finished,…

Q: What is the auditor’s role with respect to the fixed asset system?

A: Definition: Fixed Assets: It refers to the long-term assets having a useful life of more than a year…

Q: Where can authoritative IFRS guidance related to intangible assets be found?

A: International financial reporting standards (IFRS): The international financial reporting standards…

Q: Why is the recording of depreciation expense necessary?

A: Introduction:- Depreciation is non cash expenses. Which is charged on fixed asset. Which is charged…

Q: How should intangible assets and property, plant, and equipment (PP&E) be treated when their service…

A: The Answer

Q: Should the engineers be able to assess the reality of depreciating fixed assets?

A: A company should assess the position of its fixed asset and check for its impairment if condition…

Q: What statement is loss of sold equipment on?

A: Loss on sale of Equipment is a non operating loss. Such losses are shown in Income Statement after…

Q: What is the meaning behind cost of acquisition? Please explain and provide an example.

A: By tracking the cost of acquisition, businesses can assess the profitability of their marketing…

Q: What is impairment in the context of intangible assets?

A: Non-physical assets without physical substance but with economic worth to a business or individual…

Q: What are the two main characteristics of intangibleassets?

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Q: Explain the concept of VALUE IN USE. Why can it be a basis for recoverable amount of an item of…

A: Value in use means the asset’s net worth for the present time. Value in use is used to take decision…

Q: What are some examples of tangible and intangible assets?

A: Introduction:- Assets are mainly categories into two types based on the existence. these are as…