Chapter 11 - PPE Flashcards
1
Q
PPES are
A
long term in nature and have physical substance
2
Q
Can you resell PPEs?
A
no
3
Q
cash purchases of PPEs show..
A
clear cash value
4
Q
land does NOT…
A
depreciate
5
Q
land improvement DO…
A
depreciate
6
Q
gain is fully recognized when..
A
the exchange has commercial substance
7
Q
gain is not recognized when
A
lacks commercial substance and no cash is involved
8
Q
partial gain is recognized when
A
it lacks a commercial subrange but cash is received
9
Q
weighted average is based on…
A
how long you have been using it
10
Q
interest capitalized =
A
weighted average * interest rate
11
Q
expenditures that produce benefits beyond one year are
A
capitalized
