Identify the value at which the cost of the asset would be recorded.

Question

Want to see more full solutions like this?

Answer 1

Question

Chapter 7, Problem 1SSQ

To determine

Identify the value at which the cost of the asset would be recorded.

Expert Solution & Answer

Answer to Problem 1SSQ

b. Cost of the asset plus all costs necessary to get the asset ready for use.

Explanation of Solution

Long term Assets: Long term assets are assets that can be held for a longer period of time and cannot be easily converted to cash. They are also known as non-current assets. The long term asset includes the property, plant and equipment, long term investments and intangible assets.

Explanation for the incorrect answer:

a. Cost of the asset only. Long term assets are initially recorded at its cost plus all the expenditures that are necessary to get the asset ready for use. Thus, the long term assets are not recorded at the cost of the asset. Hence, this is incorrect option.

c. Appraised value. Appraised value is an assessment of a property’s value based on a given point of time and thus, appraised value is not recorded as the cost of the asset. Hence, this is incorrect option.

d. Cost of the asset, but subsequently adjust it up or down to appraised value. Long term assets are recorded at its cost plus all the expenditures that are necessary to get the asset ready for use. Hence, this is incorrect option.

Explanation for the correct answer:

b. Cost of the asset plus all costs necessary to get the asset ready for use. Long-term assets are initially recorded at its cost plus all the expenditures that are necessary to get the asset ready for use. The initial cost of the Long term asset might be more than the purchase price. The long term assets also include additional amounts which are paid by the firm, to bring the asset to its desired condition and location for use. Hence, this is correct option.

Conclusion

Hence, the correct option is b. Cost of the asset plus all costs necessary to get the asset ready for use.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Students have asked these similar questions

Please need help with this accounting question

General Accounting

I am looking for the correct answer to this accounting question with appropriate explanations.

Answer 2

Question

Chapter 7, Problem 1SSQ

To determine

Identify the value at which the cost of the asset would be recorded.

Expert Solution & Answer

Answer to Problem 1SSQ

b. Cost of the asset plus all costs necessary to get the asset ready for use.

Explanation of Solution

Long term Assets: Long term assets are assets that can be held for a longer period of time and cannot be easily converted to cash. They are also known as non-current assets. The long term asset includes the property, plant and equipment, long term investments and intangible assets.

Explanation for the incorrect answer:

a. Cost of the asset only. Long term assets are initially recorded at its cost plus all the expenditures that are necessary to get the asset ready for use. Thus, the long term assets are not recorded at the cost of the asset. Hence, this is incorrect option.

c. Appraised value. Appraised value is an assessment of a property’s value based on a given point of time and thus, appraised value is not recorded as the cost of the asset. Hence, this is incorrect option.

d. Cost of the asset, but subsequently adjust it up or down to appraised value. Long term assets are recorded at its cost plus all the expenditures that are necessary to get the asset ready for use. Hence, this is incorrect option.

Explanation for the correct answer:

b. Cost of the asset plus all costs necessary to get the asset ready for use. Long-term assets are initially recorded at its cost plus all the expenditures that are necessary to get the asset ready for use. The initial cost of the Long term asset might be more than the purchase price. The long term assets also include additional amounts which are paid by the firm, to bring the asset to its desired condition and location for use. Hence, this is correct option.

Conclusion

Hence, the correct option is b. Cost of the asset plus all costs necessary to get the asset ready for use.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 3

Question

Chapter 7, Problem 1SSQ

To determine

Identify the value at which the cost of the asset would be recorded.

Expert Solution & Answer

Answer to Problem 1SSQ

b. Cost of the asset plus all costs necessary to get the asset ready for use.

Explanation of Solution

Long term Assets: Long term assets are assets that can be held for a longer period of time and cannot be easily converted to cash. They are also known as non-current assets. The long term asset includes the property, plant and equipment, long term investments and intangible assets.

Explanation for the incorrect answer:

a. Cost of the asset only. Long term assets are initially recorded at its cost plus all the expenditures that are necessary to get the asset ready for use. Thus, the long term assets are not recorded at the cost of the asset. Hence, this is incorrect option.

c. Appraised value. Appraised value is an assessment of a property’s value based on a given point of time and thus, appraised value is not recorded as the cost of the asset. Hence, this is incorrect option.

d. Cost of the asset, but subsequently adjust it up or down to appraised value. Long term assets are recorded at its cost plus all the expenditures that are necessary to get the asset ready for use. Hence, this is incorrect option.

Explanation for the correct answer:

b. Cost of the asset plus all costs necessary to get the asset ready for use. Long-term assets are initially recorded at its cost plus all the expenditures that are necessary to get the asset ready for use. The initial cost of the Long term asset might be more than the purchase price. The long term assets also include additional amounts which are paid by the firm, to bring the asset to its desired condition and location for use. Hence, this is correct option.

Conclusion

Hence, the correct option is b. Cost of the asset plus all costs necessary to get the asset ready for use.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Chapter 7, Problem 1SSQ

To determine

Identify the value at which the cost of the asset would be recorded.

Expert Solution & Answer

Answer to Problem 1SSQ

b. Cost of the asset plus all costs necessary to get the asset ready for use.

Explanation of Solution

Long term Assets: Long term assets are assets that can be held for a longer period of time and cannot be easily converted to cash. They are also known as non-current assets. The long term asset includes the property, plant and equipment, long term investments and intangible assets.

Explanation for the incorrect answer:

a. Cost of the asset only. Long term assets are initially recorded at its cost plus all the expenditures that are necessary to get the asset ready for use. Thus, the long term assets are not recorded at the cost of the asset. Hence, this is incorrect option.

c. Appraised value. Appraised value is an assessment of a property’s value based on a given point of time and thus, appraised value is not recorded as the cost of the asset. Hence, this is incorrect option.

d. Cost of the asset, but subsequently adjust it up or down to appraised value. Long term assets are recorded at its cost plus all the expenditures that are necessary to get the asset ready for use. Hence, this is incorrect option.

Explanation for the correct answer:

b. Cost of the asset plus all costs necessary to get the asset ready for use. Long-term assets are initially recorded at its cost plus all the expenditures that are necessary to get the asset ready for use. The initial cost of the Long term asset might be more than the purchase price. The long term assets also include additional amounts which are paid by the firm, to bring the asset to its desired condition and location for use. Hence, this is correct option.

Conclusion

Hence, the correct option is b. Cost of the asset plus all costs necessary to get the asset ready for use.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 7, Problem 1SSQ

To determine

Identify the value at which the cost of the asset would be recorded.

Expert Solution & Answer

Answer to Problem 1SSQ

b. Cost of the asset plus all costs necessary to get the asset ready for use.

Explanation of Solution

Long term Assets: Long term assets are assets that can be held for a longer period of time and cannot be easily converted to cash. They are also known as non-current assets. The long term asset includes the property, plant and equipment, long term investments and intangible assets.

Explanation for the incorrect answer:

a. Cost of the asset only. Long term assets are initially recorded at its cost plus all the expenditures that are necessary to get the asset ready for use. Thus, the long term assets are not recorded at the cost of the asset. Hence, this is incorrect option.

c. Appraised value. Appraised value is an assessment of a property’s value based on a given point of time and thus, appraised value is not recorded as the cost of the asset. Hence, this is incorrect option.

d. Cost of the asset, but subsequently adjust it up or down to appraised value. Long term assets are recorded at its cost plus all the expenditures that are necessary to get the asset ready for use. Hence, this is incorrect option.

Explanation for the correct answer:

b. Cost of the asset plus all costs necessary to get the asset ready for use. Long-term assets are initially recorded at its cost plus all the expenditures that are necessary to get the asset ready for use. The initial cost of the Long term asset might be more than the purchase price. The long term assets also include additional amounts which are paid by the firm, to bring the asset to its desired condition and location for use. Hence, this is correct option.

Conclusion

Hence, the correct option is b. Cost of the asset plus all costs necessary to get the asset ready for use.

Answer 6

Chapter 7, Problem 1SSQ

To determine

Identify the value at which the cost of the asset would be recorded.

Expert Solution & Answer

Answer to Problem 1SSQ

b. Cost of the asset plus all costs necessary to get the asset ready for use.

Explanation of Solution

Long term Assets: Long term assets are assets that can be held for a longer period of time and cannot be easily converted to cash. They are also known as non-current assets. The long term asset includes the property, plant and equipment, long term investments and intangible assets.

Explanation for the incorrect answer:

a. Cost of the asset only. Long term assets are initially recorded at its cost plus all the expenditures that are necessary to get the asset ready for use. Thus, the long term assets are not recorded at the cost of the asset. Hence, this is incorrect option.

c. Appraised value. Appraised value is an assessment of a property’s value based on a given point of time and thus, appraised value is not recorded as the cost of the asset. Hence, this is incorrect option.

d. Cost of the asset, but subsequently adjust it up or down to appraised value. Long term assets are recorded at its cost plus all the expenditures that are necessary to get the asset ready for use. Hence, this is incorrect option.

Explanation for the correct answer:

b. Cost of the asset plus all costs necessary to get the asset ready for use. Long-term assets are initially recorded at its cost plus all the expenditures that are necessary to get the asset ready for use. The initial cost of the Long term asset might be more than the purchase price. The long term assets also include additional amounts which are paid by the firm, to bring the asset to its desired condition and location for use. Hence, this is correct option.

Conclusion

Hence, the correct option is b. Cost of the asset plus all costs necessary to get the asset ready for use.

Answer 7

Chapter 7, Problem 1SSQ

To determine

Identify the value at which the cost of the asset would be recorded.

Answer 8

Expert Solution & Answer

Answer to Problem 1SSQ

b. Cost of the asset plus all costs necessary to get the asset ready for use.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Explanation of Solution

Long term Assets: Long term assets are assets that can be held for a longer period of time and cannot be easily converted to cash. They are also known as non-current assets. The long term asset includes the property, plant and equipment, long term investments and intangible assets.

Explanation for the incorrect answer:

a. Cost of the asset only. Long term assets are initially recorded at its cost plus all the expenditures that are necessary to get the asset ready for use. Thus, the long term assets are not recorded at the cost of the asset. Hence, this is incorrect option.

c. Appraised value. Appraised value is an assessment of a property’s value based on a given point of time and thus, appraised value is not recorded as the cost of the asset. Hence, this is incorrect option.

d. Cost of the asset, but subsequently adjust it up or down to appraised value. Long term assets are recorded at its cost plus all the expenditures that are necessary to get the asset ready for use. Hence, this is incorrect option.

Explanation for the correct answer:

b. Cost of the asset plus all costs necessary to get the asset ready for use. Long-term assets are initially recorded at its cost plus all the expenditures that are necessary to get the asset ready for use. The initial cost of the Long term asset might be more than the purchase price. The long term assets also include additional amounts which are paid by the firm, to bring the asset to its desired condition and location for use. Hence, this is correct option.