- 7. The cost of fully depreciated asset remaining in service and the related accumulated depreciation (1 Point) should not be removed for the accounts and therefore included from property, plant and equipment without disclosure should be removed for the accounts and excluded from property, plant and equipment. should not be removed for the accounts and therefore included from property, plant and equipment with disclosure. should be adjusted to conform to new estimated useful life.
- 6. Which of the following statements correct? 1- The purpose of depreciation is to have the balance sheet report the current value of a fixed asset. II - When an entity purchases real estate consisting of a 10 - hectare parcel of land and a building, the entity will depreciate the cost over the useful life of the building. III - A number of companies may depreciate the same model computer over a period of three years, while another may do so over a period of five years, and both are correct. IV - Depreciation on units of property, plant and equipment that are reserved or standby should not be continued. V- Accelerated depreciation methods lead to higher depreciation over time (1 Point) ) I only IV only III only II only Vonly
- Hin a group of three to five students visit the website and look for 3 examples in each of the following and present to the class Turnaround strategy - Captive company strategy Liquidation strategy Maintain the market share strategy Increase the market share strategy Let it fall strategy
- 3. Which two of the following statements are correct concerning the depreciation of an item of property, plant and equipment? 1. An enterprise shall continue recognizing depreciation even if the new estimate of residual value exceeds asset's carrying amount. II. The residual value of an asset shall be reviewed periodically and if expectation differs from the previous estimate, the change shall be accounted for as a change in accounting estimate. III. The depreciation charge for each period shall be recognized in profit or loss unless it is included in the carrying amount of another asset. IV. A change in the depreciation method is treated by adjusting prior year's depreciation (1 Point) land III H and IV I and II II and III
- 1. The period of time during which interest must be capitalized ENDS when (1 Point) the activities that are necessary to get the asset for its intended use. no further interest cost is being incurred. the asset is abandoned sold or fully depreciated. the asset is substantially complete and ready for its intended use.
