Plant Assets: Plant assets are assets which are tangible in nature and are used in a company’s operations that have a useful life of more than one accounting period. Plant assets are also called as plant and equipment assets. To identify : The classification of the costs.

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Chapter 8, Problem 2QS

To determine

Plant Assets:

Plant assets are assets which are tangible in nature and are used in a company’s operations that have a useful life of more than one accounting period. Plant assets are also called as plant and equipment assets.

To identify: The classification of the costs.

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Plant Asset Cost Listed below are certain costs (or discounts) incurred in the purchase or construction of new plant assets. (1) Indicate whether the costs should be expensed or capitalized (meaning they are included in the cost of the plant assets on the balance sheet). (2) For costs that should be included in plant assets, indicate in which category of plant assets (Equipment, Building, or Land) the related costs should be recorded on the balance sheet. Expensed or Capitalized Asset Category 1. Charges incurred to train employees to use new equipment 2. Invoice cost to purchase new equipment 3. Deduction for an early payment discount taken on the purchase of new equipment 4. Real estate commissions incurred on land purchased for a new plant 5. Property taxes on land incurred after it was purchased 6. Costs of tune-up for the truck used to deliver new equipment 7. Costs to lay the foundation for a new building 8. Insurance on a new building during the construction phase

Listed below are costs (or discounts) to purchase or construct new plant assets. (1) Indicate whether the costs should be expensed or capitalized (Meaning they are included in the cost of the plant assets on the balance sheet.) (2) For costs that should be capitalized, indicate in which category of plant assets (Equipment, Building, or Land) the related costs should be recorded on the balance sheet. List 1. Costs to clear and grade land purchased for a new plant. 2. Parking ticket fees incurred by the delivery truck that illegally parked when delivering new equipment. 3. Demolition costs to remove an old building on land purchased. 4. Janitorial costs incurred to clean equipment. 5. Repair costs to fix new equipment damaged by the crew that unpacked it. 6. Costs to lay foundation for a new building. 7. Costs to unpack and assemble new equipment. 8. Costs charged by a contractor to install new equipment into the production line. Category

Please help me with the categories. Thank you

Answer 2

Question

Chapter 8, Problem 2QS

To determine

Plant Assets:

Plant assets are assets which are tangible in nature and are used in a company’s operations that have a useful life of more than one accounting period. Plant assets are also called as plant and equipment assets.

To identify: The classification of the costs.

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Answer 3

Question

Chapter 8, Problem 2QS

To determine

Plant Assets:

Plant assets are assets which are tangible in nature and are used in a company’s operations that have a useful life of more than one accounting period. Plant assets are also called as plant and equipment assets.

To identify: The classification of the costs.

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Answer 4

Question

Chapter 8, Problem 2QS

To determine

Plant Assets:

Plant assets are assets which are tangible in nature and are used in a company’s operations that have a useful life of more than one accounting period. Plant assets are also called as plant and equipment assets.

To identify: The classification of the costs.

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Answer 5

Chapter 8, Problem 2QS

To determine

Plant Assets:

Plant assets are assets which are tangible in nature and are used in a company’s operations that have a useful life of more than one accounting period. Plant assets are also called as plant and equipment assets.

To identify: The classification of the costs.

Answer 6

Chapter 8, Problem 2QS

To determine

Plant Assets:

Plant assets are assets which are tangible in nature and are used in a company’s operations that have a useful life of more than one accounting period. Plant assets are also called as plant and equipment assets.

To identify: The classification of the costs.

Answer 7

Chapter 8, Problem 2QS

To determine

Plant Assets:

Plant assets are assets which are tangible in nature and are used in a company’s operations that have a useful life of more than one accounting period. Plant assets are also called as plant and equipment assets.

To identify: The classification of the costs.

Answer 8

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Answer 9

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Answer 11

Ch. 8 - Prob. 1MCQ Ch. 8 - Prob. 2MCQ Ch. 8 - A company purchased machinery for $10,800,000 on...Ch. 8 - Prob. 4MCQ Ch. 8 - Prob. 5MCQ Ch. 8 - Prob. 1DQ Ch. 8 - What is the general rule for cost inclusion for...Ch. 8 - Prob. 3DQ Ch. 8 - Prob. 4DQ Ch. 8 - Prob. 5DQ

Plant Assets: Plant assets are assets which are tangible in nature and are used in a company’s operations that have a useful life of more than one accounting period. Plant assets are also called as plant and equipment assets. To identify : The classification of the costs.

Solution Summary: The author explains that plant assets are tangible in nature and have a useful life of more than one accounting period.

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Plant Assets:

Plant assets are assets which are tangible in nature and are used in a company’s operations that have a useful life of more than one accounting period. Plant assets are also called as plant and equipment assets.

To identify: The classification of the costs.

Want to see the full answer?

Chapter 8 Solutions

Plant Assets: Plant assets are assets which are tangible in nature and are used in a company’s operations that have a useful life of more than one accounting period. Plant assets are also called as plant and equipment assets. To identify : The classification of the costs.

Solution Summary: The author explains that plant assets are tangible in nature and have a useful life of more than one accounting period.

Videos

Plant Assets: Plant assets are assets which are tangible in nature and are used in a company’s operations that have a useful life of more than one accounting period. Plant assets are also called as plant and equipment assets. To identify: The classification of the costs.

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Chapter 8 Solutions

Plant Assets:

Plant assets are assets which are tangible in nature and are used in a company’s operations that have a useful life of more than one accounting period. Plant assets are also called as plant and equipment assets.

To identify: The classification of the costs.