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i need answers for question 1-5 please. they are multiple choices Test Information Description Read the following footnote for The Hershey Company and answer these
i need answers for question 1-5 please. they are multiple choices
Test Information Description Read the following footnote for The Hershey Company and answer these questions. THE HERSHEY COMPANY NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued) Property, Plant and Equipment Property, plant and equipment is stated at cost and depreciated on a straight-line basis over the estimated useful lives of the assets, as follows: 3 to 15 years for machinery and equipment; and 25 to 40 years for buildings and related improvements. At December 31,2019 and December 31,2018 , property, plant and equipment included assets under finance lease (formerly capital lease) arrangements with net book values totaling $93,917 and $110,249, respectively. Total depreciation expense for the years ended December 31,2019,2018 and 2017 was $218,096,$231,012 and $ 211,592, respectively, and included depreciation on assets recorded under finance lease arrangements. Maintenance and repairs are expensed as incurred. We capitalize applicable interest charges incurred during the construction of new facilities and production lines and amortize these costs over the assets' estimated useful lives. We review long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. We measure the recoverability of assets to be held and used by a comparison of the carrying amount of long-lived assets to future undiscounted net cash flows expected to be generated. If these assets are considered to be impaired, we measure impairment as the amount by which the carrying amount of the assets exceeds the fair value of the assets. We report assets held for sale or disposal at the lower of the carrying amount or fair value less cost to sell. Property Plant and Equipment for Hershey is stated at: A. Lower of cost or market B. Cost. C. Market. D. Net realizable value QUESTION 2 Which of the depreciation methods we leamed is used by The Hershey Company? A. Straight-line method B. Specific Identification method. C. Double -declining balance method. D. Units of production method QUESTION 3 Are maintenance and repairs costs expensed or capitalized as an asset? A. Expensed. B. Added to cost of equipment. C. Capitallzed. D. Amortized. What is the estimated useful life of machinery and equipment at The Hershey Company? A. 315 years. B. 15-25 years C. over 50 years. D. 2550 years. QUESTION 5 The Hershey footnote mentions the carrying value of an asset. This is not in the footnote, but in our notes. What is the carrying value (book value) of an asset? A. Cost. B. Depreciable cost less Accumulated Depreciation. C. Cost less Accumulated Depreciation D. Depreciable Cost of an Asset Step by Step Solution
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