The following questions are unrelated except that they all apply to plant assets and intangible assets :

Question:

The following questions are unrelated except that they all apply to plant assets and :
1. The manager of Carpet World regularly debits the cost of repairs and maintenance of plant assets to Plant and Equipment. Why would she do that, since she knows she is violating GAAP?
2. The manager of Horizon Software regularly buys plant assets and debits the cost to Repairs and Maintenance Expense. Why would he do that, since he knows this action violates GAAP?
3. It has been suggested that because many have no value except to the company that owns them, they should be valued at $1.00 or zero on the balance sheet.
Many accountants disagree with this view. Which view do you support? Why?

Intangible Assets
An intangible asset is a resource controlled by an entity without physical substance. Unlike other assets, an intangible asset has no physical existence and you cannot touch it.Types of Intangible Assets and ExamplesSome examples are patented...