Accounting: Tools for Business Decision Making, 5th Edition

Published by Wiley
ISBN 10: 1118128168
ISBN 13: 978-1-11812-816-9

Chapter 9 - Reporting and Analyzing Long-Lived Assets - Questions: 1

Answer

The cost principal requires the companies to record plant assets at cost. Cost consist of all expenditures necessary to acquire an asset and make it ready for its intended use.

Work Step by Step

Hence, any expenditure. like the purchase price, freight casts paid by the purchaser, and installation casts are the cast to record as plant asset.
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