Chapter 10, Problem 11P

To determine

Long-term assets can be purchased by paying cash, accepting notes payable, or by exchanging used assets. Also some times more than one asset may be purchased by paying a lump sum amount. In such cases the lump sum amount must be fairly distributed over all assets in order to record the assets at a correct value.

(a)

To describe the major attributes of these assets and how they are different from other assets.

To determine

(b)

To determine the value at which K C should record the newly acquired assets.

To determine

(c)

To determine whether the asset should be classified as a plant asset.