Which of the following costs generally would be capitalized to a property, plant and equipment account? installation costs related to the machine import duties incurred on purchase O freight-out O Interest on debt incurred to purchase the item

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Which of the following costs generally would be capitalized to a property, plant and equipment account?
O installation costs related to the machine
O import duties incurred on purchase
O freight-out
O Interest on debt incurred to purchase the item
Transcribed Image Text:Which of the following costs generally would be capitalized to a property, plant and equipment account? O installation costs related to the machine O import duties incurred on purchase O freight-out O Interest on debt incurred to purchase the item
Which of the following statements is correct?
O An intangible asset acquired by an issuance of share capital should generally be valued at the fair market value of the stock issued
O An unidentifiable asset developed internally is never recognized in the accounts as an asset
O Amortization of intangible assets involves an adjusting entry that should not be reversed in the next accounting period
O All annual payments made by a franchisee to the franchiser for assistance should be capitalized as part of the cost of the franchise
Transcribed Image Text:Which of the following statements is correct? O An intangible asset acquired by an issuance of share capital should generally be valued at the fair market value of the stock issued O An unidentifiable asset developed internally is never recognized in the accounts as an asset O Amortization of intangible assets involves an adjusting entry that should not be reversed in the next accounting period O All annual payments made by a franchisee to the franchiser for assistance should be capitalized as part of the cost of the franchise
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