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Which of the following is not a major characteristic of a plant asset?

a. Possesses physical substance

b. Acquired for resale

c. Acquired for use

d. Yields services over a number of years

 

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Hubert Koch
Hubert KochLv2
20 Mar 2020
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Related questions

A characteristic of a plant asset is that it is

a. not currently used in the business but held for future use.

b. used in the operations of a business.

c. Intangible.

d. held for sale in the ordinary course of the business.

A plant asset with a cash price of $405,000 and zero residualvalue was acquired on January 1, 2002 and $315,000 was spent toprepare it for operation. After it was placed into use, $20,000 wasspent to maintain the machine in 2002 and $25,000 in 2003.Units-of-production depreciation is used and it is estimated theasset will produce 800,000 units over its useful life. During 2002,90,000 units were produced. In 2003, 110,000 units wereproduced.

A. How much accumulated depreciation is reported as of December31, 2003?

B. Assuming your previous answer in A. is correct, what is theNet Book Value of the plant asset reported on the Dec. 31, 2003balance sheet?

1.Equipment acquired at the beginningof the year at a cost of $440,000 has an estimated residual valueof $25,000 and an estimated useful life of 8 years. Straight-linedepreciation is used.

Determine (a) the total amount to bedepreciated over the life of the asset,

(b) the amount of depreciation eachyear,

(c) the journal entry to record thefirst year’s depreciation,

(d) the book value of the asset at theend of the first year.

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