Plant Assets: Plant assets are referred to the long-term and tangible assets that business use in its business operations. Plant assets are also popularly known as Property, Plant, and Equipment or simply the Fixed Assets. To Identify: The cost that is not recorded as part of the cost of the building.

Question

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Answer 1

Question

Chapter 9, Problem 1QC

To determine

Plant Assets: Plant assets are referred to the long-term and tangible assets that business use in its business operations. Plant assets are also popularly known as Property, Plant, and Equipment or simply the Fixed Assets.

To Identify: The cost that is not recorded as part of the cost of the building.

Expert Solution & Answer

Answer to Problem 1QC

Annual building maintenance is the cost that is not recorded as part of the cost of the building. Hence, option d is correct.

Explanation of Solution

Explanations:

The expenses that are incurred to increase the efficiency of the building or increase the useful life of the building or make the building ready to use, would be considered as the cost of the building. On the other hand, expenses incurred to keep the building in good usable condition are referred to as maintenance cost that are treated as revenue expenditures.

In option a, b, and c the expenses incurred are to make the building ready for use, and therefore should be considered as cost of the building. But in option d, annual building maintenance is incurred to keep the building in good condition.

Conclusion

Therefore, the correct option is d.

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Students have asked these similar questions

Companies have a significant amount of investment in long-lived assets, which include property, plant, and equipment (commonly referred to as plant assets); and intangible assets. We will also discuss different types of liabilities and understand how to account for and report those liabilities. What kind of plant assets are used in apple? What is the estimate of the amount invested in those specific plant assets?

Companies have a significant amount of investment in long-lived assets, which include property, plant, and equipment (commonly referred to as plant assets); and intangible assets. We will also discuss different types of liabilities and understand how to account for and report those liabilities. What kind of plant assets are used in a specific company or place of business? What is the estimate of the amount invested in those specific plant assets?

What kind of plant assets are used in a spesific company or place of business? What is the estimate of the amount invested in those plant assets?

Answer 2

Question

Chapter 9, Problem 1QC

To determine

Plant Assets: Plant assets are referred to the long-term and tangible assets that business use in its business operations. Plant assets are also popularly known as Property, Plant, and Equipment or simply the Fixed Assets.

To Identify: The cost that is not recorded as part of the cost of the building.

Expert Solution & Answer

Answer to Problem 1QC

Annual building maintenance is the cost that is not recorded as part of the cost of the building. Hence, option d is correct.

Explanation of Solution

Explanations:

The expenses that are incurred to increase the efficiency of the building or increase the useful life of the building or make the building ready to use, would be considered as the cost of the building. On the other hand, expenses incurred to keep the building in good usable condition are referred to as maintenance cost that are treated as revenue expenditures.

In option a, b, and c the expenses incurred are to make the building ready for use, and therefore should be considered as cost of the building. But in option d, annual building maintenance is incurred to keep the building in good condition.

Conclusion

Therefore, the correct option is d.

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Answer 3

Question

Chapter 9, Problem 1QC

To determine

Plant Assets: Plant assets are referred to the long-term and tangible assets that business use in its business operations. Plant assets are also popularly known as Property, Plant, and Equipment or simply the Fixed Assets.

To Identify: The cost that is not recorded as part of the cost of the building.

Expert Solution & Answer

Answer to Problem 1QC

Annual building maintenance is the cost that is not recorded as part of the cost of the building. Hence, option d is correct.

Explanation of Solution

Explanations:

The expenses that are incurred to increase the efficiency of the building or increase the useful life of the building or make the building ready to use, would be considered as the cost of the building. On the other hand, expenses incurred to keep the building in good usable condition are referred to as maintenance cost that are treated as revenue expenditures.

In option a, b, and c the expenses incurred are to make the building ready for use, and therefore should be considered as cost of the building. But in option d, annual building maintenance is incurred to keep the building in good condition.

Conclusion

Therefore, the correct option is d.

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Answer 4

Question

Chapter 9, Problem 1QC

To determine

Plant Assets: Plant assets are referred to the long-term and tangible assets that business use in its business operations. Plant assets are also popularly known as Property, Plant, and Equipment or simply the Fixed Assets.

To Identify: The cost that is not recorded as part of the cost of the building.

Expert Solution & Answer

Answer to Problem 1QC

Annual building maintenance is the cost that is not recorded as part of the cost of the building. Hence, option d is correct.

Explanation of Solution

Explanations:

The expenses that are incurred to increase the efficiency of the building or increase the useful life of the building or make the building ready to use, would be considered as the cost of the building. On the other hand, expenses incurred to keep the building in good usable condition are referred to as maintenance cost that are treated as revenue expenditures.

In option a, b, and c the expenses incurred are to make the building ready for use, and therefore should be considered as cost of the building. But in option d, annual building maintenance is incurred to keep the building in good condition.

Conclusion

Therefore, the correct option is d.

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Answer 5

Chapter 9, Problem 1QC

To determine

Plant Assets: Plant assets are referred to the long-term and tangible assets that business use in its business operations. Plant assets are also popularly known as Property, Plant, and Equipment or simply the Fixed Assets.

To Identify: The cost that is not recorded as part of the cost of the building.

Expert Solution & Answer

Answer to Problem 1QC

Annual building maintenance is the cost that is not recorded as part of the cost of the building. Hence, option d is correct.

Explanation of Solution

Explanations:

The expenses that are incurred to increase the efficiency of the building or increase the useful life of the building or make the building ready to use, would be considered as the cost of the building. On the other hand, expenses incurred to keep the building in good usable condition are referred to as maintenance cost that are treated as revenue expenditures.

In option a, b, and c the expenses incurred are to make the building ready for use, and therefore should be considered as cost of the building. But in option d, annual building maintenance is incurred to keep the building in good condition.

Conclusion

Therefore, the correct option is d.

Answer 6

Chapter 9, Problem 1QC

To determine

Plant Assets: Plant assets are referred to the long-term and tangible assets that business use in its business operations. Plant assets are also popularly known as Property, Plant, and Equipment or simply the Fixed Assets.

To Identify: The cost that is not recorded as part of the cost of the building.

Expert Solution & Answer

Answer to Problem 1QC

Annual building maintenance is the cost that is not recorded as part of the cost of the building. Hence, option d is correct.

Explanation of Solution

Explanations:

The expenses that are incurred to increase the efficiency of the building or increase the useful life of the building or make the building ready to use, would be considered as the cost of the building. On the other hand, expenses incurred to keep the building in good usable condition are referred to as maintenance cost that are treated as revenue expenditures.

In option a, b, and c the expenses incurred are to make the building ready for use, and therefore should be considered as cost of the building. But in option d, annual building maintenance is incurred to keep the building in good condition.

Conclusion

Therefore, the correct option is d.

Answer 7

Chapter 9, Problem 1QC

To determine

Plant Assets: Plant assets are referred to the long-term and tangible assets that business use in its business operations. Plant assets are also popularly known as Property, Plant, and Equipment or simply the Fixed Assets.

To Identify: The cost that is not recorded as part of the cost of the building.

Answer 8

Expert Solution & Answer

Answer to Problem 1QC

Annual building maintenance is the cost that is not recorded as part of the cost of the building. Hence, option d is correct.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Explanation of Solution

Explanations:

The expenses that are incurred to increase the efficiency of the building or increase the useful life of the building or make the building ready to use, would be considered as the cost of the building. On the other hand, expenses incurred to keep the building in good usable condition are referred to as maintenance cost that are treated as revenue expenditures.

In option a, b, and c the expenses incurred are to make the building ready for use, and therefore should be considered as cost of the building. But in option d, annual building maintenance is incurred to keep the building in good condition.

Answer 12

Conclusion

Therefore, the correct option is d.

Answer 13

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Answer to Problem 1QC

Explanation of Solution

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Chapter 9 Solutions