INSTRUCTIONSYou are to follow the case instructions in the text as you complete your selected case. Items to include are outlined as follows: 500 words in length that addresses all of the criteria for the selected case. Your assignment must be in current APA format. You must support your assertions with at least two citations. In addition, you will provide a biblical application for the subject matter of the case. Acceptable sources include peer-reviewed journal articles, FASB Codification, the textbook, and the Bible. Note: Your assignment will be checked for originality via the Turnitin plagiarism tool.
CASE 9-9. Accounting for Property, Plant and Equipment
Among the principal topics related to the accounting for the property, plant and equipment of a company are acquisitions and retirements.
a. What expenditures should be capitalized when equipment is acquired for cash?
b. Assume that market value of equipment is not determinable by reference to a similar purchase for cash. Describe how the equipment compony should determine the capitalized cost of equipment purchased by exchanging it for each of the following:
- Bonds having an established market price.
- Common stock not having an established market price
- Similar equipment not having a determinable market.
c. Describe the factors that determine whether expenditures relating to property, plant and equipment already in use should be capitalized
d. describe how to account for the gain or loss on the sale of property, plant , and equipment.