The following questions are unrelated except that they apply to property, plant, and equipment: 1. Julian Lyon,

Question:

The following questions are unrelated except that they apply to property, plant, and equipment:
1. Julian Lyon, the owner of Lyon's Actuarial Services, regularly debits the cost of repairs and maintenance of amortizable assets to Property, Plant, and Equipment. Why would he do that, since he knows he is violating ASPE?
2. It has been suggested that, since many have no value except to the company that owns them, they should be valued at $1 or zero on the balance sheet. Many accountants disagree with this view. Which view do you support? Why?
3. Jasmine Singh, the owner of Lakeshore Motors, regularly buys property, plant, and equipment and debits the cost to Repairs and Maintenance Expense. Why would she do that, since she knows this action violates ASPE?
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...