ACQUISITION COST Listed below are items that may relate to property, plant, and equipment. . Purchase price
Question:
ACQUISITION COST Listed below are items that may relate to property, plant, and equipment.
. Purchase price of a machine
. Delinquent property taxes
. Interest on debt used to purchase equipment
. Sales taxes paid on purchase of equipment
. Costs to install a machine
. Ordinary repairs to equipment
. Cost to remodel a building
. Architectural fees paid for design of a building
. Cost of training employees to run equipment
. Transportation costs to have furniture delivered Required:
Determine whether each item is included as part of the cost of property, plant, and equipment. For any item excluded from the cost of property, plant, and equipment, explain why the item was excluded.
Exercise
Step by Step Answer:
Cornerstones Of Financial Accounting Current Trends Update
ISBN: 9781111527952
1st Edition
Authors: Jay Rich , Jeff Jones, Maryanne Mowen , Don Hansen