Question: With proper maintenance, certain equipment will last almost indefinitely, in which case depreciation is not necessary. Discuss.

‘With proper maintenance, certain equipment will last almost indefinitely, in which case depreciation is not necessary.’ Discuss.

Step by Step Solution

★★★★★

3.48 Rating (171 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

Depreciation results not only from wear and tear but also from technical and commercia... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Intermediate Accounting Questions!

Q:

The City of Pfeiffer starts the year of 2015 with the general fund and an enterprise fund. The general fund has two activities: education and parks/recreation. For convenience, assume that the...

Q:

The City of Pfeiffer starts the year of 2010 with the General Fund and an enterprise fund. The General Fund has two activities: education and parks/recreation. For convenience, assume that the...

Q:

Use the information in problem 40 to prepare the 2010 fund-based financial statements for the governmental funds and the proprietary funds. A statement of cash flows is not required. Assume that...

Q:

- Should depreciation be recorded on a building for a year in which the market value of the building has increased? Discuss. - With proper maintenance, certain equipment will last almost...

Q:

TUTORIAL 10 (WEEK 11) QUESTION Chapter 14 Week 11 Discussion Questions 6. Should depreciation be recorded on a building for a year in which the market value of the building has increased? Discuss. 9....

Q:

a. Why do accrual-basis financial statements provide more useful information than cash-basis financial statements? (3 marks) b. What ledger accounts are closed at the end of an accounting period? Why...

Q:

Rosy Power Tool Company purchased machinery on 1st January 2014, at a cost of $600,000 plus GST. The machinery is depreciated using the straight-line method over a useful life of 6 years with a...

Q:

Read the PG&E: Fire in Paradise case study and answer the following questions: 1. The following areas of law are relevant to this case study: Corporations Law, Environmental Law, Administrative Law,...

Q:

Delta Airlines operates almost half of its aircraft fleet under operating leases, whilst Singapore Airlines operates no aircraft under operating leases. Suppose an analyst wants to make Delta?s...

Q:

Hi, Please help me with responding to the discussion questions below because I'm having a hard time answering them myself. I have been up all night, and I'm unable to figure them out. I uploaded a...

Q:

What is the going-in capitalization rate of the investment assuming an acquisition price of $8,500,000 and that year 1 NOI is calculated using an "above-line" treatment of capital expenses and...

Q:

Create a statement of cash flows with this information? Sales Cost of Goods Sold Gross Margin Operating Expenses: Salaries and Wages Expense Rent Expense Depreciation Expense Spartan Cases Inc....

Q:

Fighting spirit is related to positive outcomes associated with cancer in the both short - and long - term. is related to positive outcomes associated with cancer in the long - term but not short -...

Q:

1. Do you see a continued trend of foreign investment into China? What would speed up and what would delay such investment?

Q:

(EPS with Convertible Bonds and Preferred Stock) On January 1, 2010, Lindsey Company issued 10-year, $3,000,000 face value, 6% bonds, at par. Each $1,000 bond is convertible into 15 shares of Lindsey...

Q:

(EPS with Options, Various Situations) Zambrano Companys net income for 2010 is $40,000. The only potentially dilutive securities outstanding were 1,000 options issued during 2009, each exercisable...

Q:

(EPS with Contingent Issuance Agreement) Brooks Inc. recently purchased Donovan Corp., a large mid western home Painting Corporation. One of the terms of the merger was that if Donovans income for...

Q:

Cream and Crimson has a capital structure of 4 0 % debt and 6 0 % equity. The tax rate is 3 4 % . The firm s bonds currently trade in the market for $ 1 1 8 4 . These $ 1 , 0 0 0 par value bonds have...

Q:

the -2010 period. Q3). (CLO1,2) Inventory management Wilkins Manufacturing has annual sales of $4 million and a gross profit margin of 40%. Its end-of-quarter inventories are Quarter Inventory...

Q:

A 1987 advertisement in the New Yorker solicited offers on a 1967 Mercury Cougar XR7 (Motor Trend's 1967 car of the year) that had been stored un-driven in a climate controlled environment for 20...