Forum No. 9 | Plant Assets | June 16-17 2023 A All Sections 1--Bardales's Construction Co. paid $5 000 for a plant asset that had a market value of $16 500. At what amount should Jonathan record this plant asset in accordance with GAAP/FASB? 77 2--On January 1, 2023, Lane Manufacturing Corporation (LMC) purchased a machine for $40 700 000. Lane's management expects to use the machine for 27 000 hours over the next six years. Lane's management estimates the residual or salvage value of the machine at $47 000. The machine was utilized for 3 900 hours in 2023 and 5 300 hours in 2024. In accordance with GAAP, Logan has appropriately adopted the units-of-production depreciation method. In accordance with GAAP, what amount of depreciation expense should Logan report for the years ended 2023 and 2024? 3--Karim plans to develop a shopping center and has spent the following amounts: Acquisition of land Surveys and legal fees Land clearing $18 000 $700 $500 Fencing $5.000 Installing lighting and signage $1 160 Based on these expenditures, what amount should Karim record in the corporation's Land account in accordance with GAAP? Where should any other amounts--amounts not recorded to the Land account--be recorded and reported? 4--On January 1, 2023 Sisarran acquired a machine for $1 030 000 and estimates the useful life of this asset at five years. Further, Sisarran estimates the residual value of this machine at $55 000 after five years of use. Sisarran appropriately applies the straight-line depreciation method to this machine. What amount of depreciation expense should Sisarran report on the Income Statement for the year ended December 31, 2023? 5--Explain how a company--subject to SEC and FASB reporting requirements--decides which costs to include in the cost of a plant asset.

All Sections 1-Bardales's Construction Co. paid $5000 for a plant asset that had a market value of $16500. At what amount should Jonathan record this plant asset in accordance with GAAP/FASB? 2-On January 1, 2023, Lane Manuf Jcturing Corporation (LMC) purchased a machine for 540700000 . Lane's management expects to use the machine for 27 000 hours over the next six years. Lane's management estimates the residual or salvage value of the machine at $47000. The machine was utilized for 3 900 hours in 2023 and 5300 hours in 2024. In accordance with GAAP, Lozan has appropriately adopted the units-of-production depreciation method. In accordance with GAAP, what amount of depreciation expense should Logan report for the years ended 2023 and 2024 ? 3-Karim plans to develop a shopping center and has spent the following amounts: Based on these expenditures, what amount should Karim record in the corporation's Land account in accordance with GAAP? Where should any other amounts-amounts not recorded to the Land account-be recorded and reported? 4--On January 1,2023 Sisarran acquired a machine for $1030000 and estimates the useful life of this asset at five years. Further, Sisarran estimates the residual value of this machine at $55000 after five years of use. Stsarran appropriately applies the straight-line depreciation method to this machine. What amount of depreciation expense should Sisarran report on the Income Statement for the year ended December 31 , 2023? 5--Explain how a company-subject to SEC and FASB reporting requirements--decides which costs to include in the cost of a plant asset