Describe the term long-lived assets and the reason behind considering them to be a “bundle of future services’.

Question

Want to see more full solutions like this?

Answer 1

Question

Chapter 8, Problem 1Q

To determine

Describe the term long-lived assets and the reason behind considering them to be a “bundle of future services’.

Expert Solution & Answer

Explanation of Solution

Long-lived assets:

Long-lived assets refer to the fixed assets, having a useful life of more than a year that is acquired by a company to be used in its business activities, for generating revenue. Some of the examples of long-lived assets are plant and equipment, land in use, natural resources, and intangible assets such as patent.

Reason behind considering the long-lived assets to be a “bundle of future services”:

Long-lived assets are acquired in expectance of the future revenues they would bring for the company in the future period. It is for this reason that the long-lived assets are considered to be a “bundle of future services”. The cost of the asset is matched as an expense with the revenues generated by the asset from one period to another period throughout the useful life of the asset.

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

Martin Hughes earns net self-employment income of $157,100. He works a second job from which he receives FICA taxable earnings of $127,600.Self-Employment tax =

Question 2 U. Richards does not keep his books on the double entry system. His bank summary amount for 2010 is as follows: Balance 1.1.2010 1890 Receipts from $44656 debtors Creditors Loan from U. Miller $2.000 Rates Rent Drawings Cash withdrawn from bank $540 0 Payment to Trade $316 95 2750 1316 3095 1642 Sundry Expense Records of cash paid were sundry $122, trade creditors $642. Cash sales amounted to cash drawings were $5289. The following information is also available: 31.12.201 31.12.2 0 011 Cash in hand $48 $93 Trade creditors $4896 $5091 Accounts Receivables 60 $71 13 32 Rent Owing $250 Rates in Advance $282 $312 Motor van (at valuation) 2800 2400 Stock 11163 13021 Required: A. Statement of Affairs. (to find opening capital as at 31.12.2010) B. Cash Account & Bank Account. C. Accounts Receivables & Accounts Payables Control A/Cs. D. Income Statement for the year ended 31 December 2011.

2: Martin Hughes earns net self-employment income of $157,100. He works a second job from which he receives FICA taxable earnings of $127,600. Self-Employment tax = $ 6,440.70 3: Elisa Grant earns net self-employment income of $198,000. She works a second job from which she receives FICA taxable earnings of $100,400. Self-Employment tax = $ 30,294.00

Answer 2

Question

Chapter 8, Problem 1Q

To determine

Describe the term long-lived assets and the reason behind considering them to be a “bundle of future services’.

Expert Solution & Answer

Explanation of Solution

Long-lived assets:

Long-lived assets refer to the fixed assets, having a useful life of more than a year that is acquired by a company to be used in its business activities, for generating revenue. Some of the examples of long-lived assets are plant and equipment, land in use, natural resources, and intangible assets such as patent.

Reason behind considering the long-lived assets to be a “bundle of future services”:

Long-lived assets are acquired in expectance of the future revenues they would bring for the company in the future period. It is for this reason that the long-lived assets are considered to be a “bundle of future services”. The cost of the asset is matched as an expense with the revenues generated by the asset from one period to another period throughout the useful life of the asset.

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 8, Problem 1Q

To determine

Describe the term long-lived assets and the reason behind considering them to be a “bundle of future services’.

Expert Solution & Answer

Explanation of Solution

Long-lived assets:

Long-lived assets refer to the fixed assets, having a useful life of more than a year that is acquired by a company to be used in its business activities, for generating revenue. Some of the examples of long-lived assets are plant and equipment, land in use, natural resources, and intangible assets such as patent.

Reason behind considering the long-lived assets to be a “bundle of future services”:

Long-lived assets are acquired in expectance of the future revenues they would bring for the company in the future period. It is for this reason that the long-lived assets are considered to be a “bundle of future services”. The cost of the asset is matched as an expense with the revenues generated by the asset from one period to another period throughout the useful life of the asset.

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 8, Problem 1Q

To determine

Describe the term long-lived assets and the reason behind considering them to be a “bundle of future services’.

Expert Solution & Answer

Explanation of Solution

Long-lived assets:

Long-lived assets refer to the fixed assets, having a useful life of more than a year that is acquired by a company to be used in its business activities, for generating revenue. Some of the examples of long-lived assets are plant and equipment, land in use, natural resources, and intangible assets such as patent.

Reason behind considering the long-lived assets to be a “bundle of future services”:

Long-lived assets are acquired in expectance of the future revenues they would bring for the company in the future period. It is for this reason that the long-lived assets are considered to be a “bundle of future services”. The cost of the asset is matched as an expense with the revenues generated by the asset from one period to another period throughout the useful life of the asset.

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 8, Problem 1Q

To determine

Describe the term long-lived assets and the reason behind considering them to be a “bundle of future services’.

Expert Solution & Answer

Explanation of Solution

Long-lived assets:

Long-lived assets refer to the fixed assets, having a useful life of more than a year that is acquired by a company to be used in its business activities, for generating revenue. Some of the examples of long-lived assets are plant and equipment, land in use, natural resources, and intangible assets such as patent.

Reason behind considering the long-lived assets to be a “bundle of future services”:

Long-lived assets are acquired in expectance of the future revenues they would bring for the company in the future period. It is for this reason that the long-lived assets are considered to be a “bundle of future services”. The cost of the asset is matched as an expense with the revenues generated by the asset from one period to another period throughout the useful life of the asset.

Answer 6

Chapter 8, Problem 1Q

To determine

Describe the term long-lived assets and the reason behind considering them to be a “bundle of future services’.

Expert Solution & Answer

Explanation of Solution

Long-lived assets:

Long-lived assets refer to the fixed assets, having a useful life of more than a year that is acquired by a company to be used in its business activities, for generating revenue. Some of the examples of long-lived assets are plant and equipment, land in use, natural resources, and intangible assets such as patent.

Reason behind considering the long-lived assets to be a “bundle of future services”:

Long-lived assets are acquired in expectance of the future revenues they would bring for the company in the future period. It is for this reason that the long-lived assets are considered to be a “bundle of future services”. The cost of the asset is matched as an expense with the revenues generated by the asset from one period to another period throughout the useful life of the asset.

Answer 7

Chapter 8, Problem 1Q

To determine

Describe the term long-lived assets and the reason behind considering them to be a “bundle of future services’.

Answer 8

Expert Solution & Answer

Explanation of Solution

Long-lived assets:

Long-lived assets refer to the fixed assets, having a useful life of more than a year that is acquired by a company to be used in its business activities, for generating revenue. Some of the examples of long-lived assets are plant and equipment, land in use, natural resources, and intangible assets such as patent.

Reason behind considering the long-lived assets to be a “bundle of future services”:

Long-lived assets are acquired in expectance of the future revenues they would bring for the company in the future period. It is for this reason that the long-lived assets are considered to be a “bundle of future services”. The cost of the asset is matched as an expense with the revenues generated by the asset from one period to another period throughout the useful life of the asset.