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

Want to see more full solutions like this?

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.

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

General Accounting

Financial Accounting Question need help with this accounting question

Give true answer this general accounting question

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.

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 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.

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 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.

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 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

Ch. 9 - Prob. 1QC Ch. 9 - Prob. 2QC Ch. 9 - Which method almost always produces the most...Ch. 9 - A Celty Airline jet costs 28,000,000 and is...Ch. 9 - A copy machine costs 45,000 when new and has...Ch. 9 - Suppose Print and Photo Center in the preceding...Ch. 9 - Prob. 7QC Ch. 9 - Prob. 8QC Ch. 9 - Liberty Corporation reported beginning and ending...Ch. 9 - A truck costs 50,000 when new and has accumulated...

Answer to Problem 1QC

Explanation of Solution

Want to see more full solutions like this?

Chapter 9 Solutions