Question

discussion question you will explain how to account for long-lived assets. What are the various categories...

discussion question you will explain how to account for long-lived assets.

What are the various categories of long-lived assets? What should be included in the cost of a long-lived asset for accounting purposes? How do accountants decide when these costs should be expensed rather than capitalized?

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Long lived aasets are the assets which expected to be retain in business for more than one year.

Long live assets are recorded in its cost and depreciable during the usefullife of assets in a certain manner

There are two sub categories for long live asset

1. Tangible - which includes physical ones like furniture, building etc

2. Intangible- like patent , goodwill etc

Long live assets are recorded in value which make its ready to use. Includes Purchase cost, Installation cost etc

If the benefit from assets is cover more than a year , it should be capitalized

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
In Chapter 8 you learned about long-term assets, both tangible and intangible.   Expenditures for long-term assets...
In Chapter 8 you learned about long-term assets, both tangible and intangible.   Expenditures for long-term assets are not expensed immediately rather they are capitalized (i.e. a new asset is created) and then expensed over their useful life (except for land and certain intangibles with an indefinite life which remain at cost unless an impairment has occurred).   Review the 10-K of Starbucks and answer the following: Starbucks 10-K link: https://www.sec.gov/Archives/edgar/data/829224/000082922414000041/sbux-9282014x10k.htm#s6571E5A222BF69F5F8068EA40E001FDA All of the data for this is located on the Starbucks...
What should companies consider before choosing a method of expensing long-lived-assets cost? What are some benefits...
What should companies consider before choosing a method of expensing long-lived-assets cost? What are some benefits and risk of various depreciation methods on a company's net income?
1)Each of the three categories of investments in debt and equity securities has similar accounting for...
1)Each of the three categories of investments in debt and equity securities has similar accounting for all of the following transactions except recognition of dividend and interest income initial recording of cost recognition of unrealized holding gains and losses recognition of realized gains or losses on sales 2)Capitalized interest for a constructed asset cannot exceed actual interest costs. True False 3)Under the full-cost method, only the costs associated with the exploration that resulted in the successful discovery of oil and...
The questions is about chapter 9 (Reporting and Analyzing Long Lived Assets) of accounting by Paul...
The questions is about chapter 9 (Reporting and Analyzing Long Lived Assets) of accounting by Paul Kimmel. Please I need detail explanation of how you know the months eg I see the table (64000-3000)/5x3 the 5 stands for the 5years given in the statement but the month (ie the 3) I don't where it is coming from. this the question Sunland Company owns equipment that cost $73,000 when purchased on January 1, 2019. It has been depreciated using the straight-line...
CC9-1 Accounting for the Use and Disposal of Long-Lived Assets [LO 9-3, LO 9-5] [The following...
CC9-1 Accounting for the Use and Disposal of Long-Lived Assets [LO 9-3, LO 9-5] [The following information applies to the questions displayed below.] Nicole’s Getaway Spa (NGS) purchased a hydrotherapy tub system to add to the wellness programs at NGS. The machine was purchased at the beginning of the year at a cost of $25,000. The estimated useful life was five years and the residual value was $1,000. Assume that the estimated productive life of the machine is 10,000 hours....
Question 1 (12 marks) a) Differentiate between the 'definition of assets' and the criteria for recognition...
Question 1 a) Differentiate between the 'definition of assets' and the criteria for recognition of assets' provided in the conceptual framework. b) If an asset is expensed in one financial year because future economic benefits were not deemed to be 'probable', can the same asset be reinstated in future periods if the benefits are subsequently assessed as probable? In this respect, does the ability to reinstate assets apply to all assets? Briefly explain. c) AASB 101 stipulates a number of...
Question 1 (12 marks) a) Differentiate between the 'definition of assets' and the criteria for recognition...
Question 1 a) Differentiate between the 'definition of assets' and the criteria for recognition of assets' provided in the conceptual framework. b) If an asset is expensed in one financial year because future economic benefits were not deemed to be 'probable', can the same asset be reinstated in future periods if the benefits are subsequently assessed as probable? In this respect, does the ability to reinstate assets apply to all assets? Briefly explain. c) AASB 101 stipulates a number of...
8. If a long-lived asset was sold before the end of its estimated useful life, the...
8. If a long-lived asset was sold before the end of its estimated useful life, the gain or loss on disposal is found by subtracting a. the book value from the cash received. b. accumulated depreciation from the original cost of the asset. c. the original cost of the asset from the asset’s book value. d. the asset’s book value from the original cost of the asset. 9. A truck costing $40,000 was purchased on January 1, 2006. The straight-line...
What must accountants consider when determining whether to capitalize the costs incurred subsequent to the acquisition...
What must accountants consider when determining whether to capitalize the costs incurred subsequent to the acquisition of long-term assets? Are all gains recognized when assets are disposed of either through exchange or sale or conversion? Why or why not? Are all losses recognized? What should be recorded as a cost upon acquisition of plant, property, and equipment? What if these assets are acquired with something other than cash? How are they accounted for? Give examples, such as stock, contributions, other...
1. Long-term or relatively permanent assets such as equipment, machinery, buildings, and land. They exist physically;...
1. Long-term or relatively permanent assets such as equipment, machinery, buildings, and land. They exist physically; they are owned and used by the company in its normal operations; and they are not offered for sale as part of normal operations. a) What are intangible assets? b) What are current assets? c) What are short-term investments in marketable securities? d) What are fixed assets? 2. Costs that benefit only the current period. These costs include such items as ordinary repairs and...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT