CH9 解答修改版

CH9 解答修改版

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CH9 解答 一、 (a) Under the cost principle, the acquisition cost for a plant asset includes all expenditures necessary to acquire the asset and make it ready for its intended use. For example, the cost of factory machinery includes the purchase price, freight costs paid by the purchaser, insurance costs during transit, and installation costs. (b) 1. Land 2. Factory Machinery 3. Delivery Equipment 4. Land Improvements 5. Delivery Equipment 6. Factory Machinery 7. Prepaid Insurance 8. License Expense 二、 Depreciable cost of $36,000, or ($42,000 – $6,000). With a four year useful life, annual depreciation is $9,000, or ($36,000 ÷ 4). Under the straight line method, depreciation is the same each year. Thus, depreciation is
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