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

Question

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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.

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Students have asked these similar questions

Assume that TDW Corporation (calendar-year-end) has 2024 taxable income of $952,000 for purposes of computing the §179 expense. The company acquired the following assets during 2024: (Use MACRS Table 1, Table 2, Table 3, Table 4, and Table 5.) Asset Machinery Computer equipment Furniture Total Placed in Service September 12 February 10 April 2 Basis $ 2,270,250 263,325 880,425 $ 3,414,000 b. What is the maximum total depreciation, including §179 expense, that TDW may deduct in 2024 on the assets it placed in service in 2024, assuming no bonus depreciation? Note: Round your intermediate calculations and final answer to the nearest whole dollar amount. Maximum total depreciation deduction (including §179 expense)

Evergreen Corporation (calendar-year-end) acquired the following assets during the current year: (Use MACRS Table 1 and Table 2.) Date Placed in Asset Machinery Service October 25 Original Basis $ 120,000 Computer equipment February 3 47,500 Used delivery truck* August 17 Furniture April 22 60,500 212,500 The delivery truck is not a luxury automobile. Note: Do not round intermediate calculations. Round your answers to the nearest whole dollar amount. b. What is the allowable depreciation on Evergreen's property in the current year if Evergreen does not elect out of bonus depreciation and elects out of §179 expense?

Lina purchased a new car for use in her business during 2024. The auto was the only business asset she purchased during the year, and her business was extremely profitable. Calculate her maximum depreciation deductions (including §179 expense unless stated otherwise) for the automobile in 2024 and 2025 (Lina doesn't want to take bonus depreciation for 2024) in the following alternative scenarios (assuming half-year convention for all): (Use MACRS Table 1, Table 2, and Exhibit 10-10.) a. The vehicle cost $40,000, and business use is 100 percent (ignore §179 expense). Year Depreciation deduction 2024 2025

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.

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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.

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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.

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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.