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Yes, an item can be acquired at a zero value and still be classified as an asset. For example, a company may receive a gift or donation of equipment, which holds value despite not having a purchase cost. Its value can be assessed based on potential benefits, such as utility or revenue generation, making it an asset on the balance sheet. However, proper accounting practices must be followed to reflect its fair value.
What else can I help you with?
When a plant asset is acquired by issuance of common stock the cost of the plant asset is properly measured by the?
Type your answer here... par value of the stock
What is historical cost?
Historical cost is the cost of an item when it was originally acquired. Historical cost does not reflect the change of value over time that an asset undergoes.
How do you remove a completely depreciated fixed asset from your fixed asset accounts?
Debit Accumulated Depreciation and Credit the Fixed Asset account for the capitalized value; however, if you still own the asset, you should not remove it.
When an asset is sold a gain occurs when the?
Gain on sale of asset is occured when actual value of asset is less then the sale value of asset.
Is there any difference between absolete asset and assets at written down value?
Obsolete asset is that asset which suddenly becomes obsolete due to any technological change or any reason and has no value while written down asset is asset which is usable asset with written down value
When a plant asset is acquired by issuance of common stock the cost of the plant asset is properly measured by the?
Type your answer here... par value of the stock
If equipment priced at 130000 is acquired by trading in a similar asset at 8000 What is the cost basis of the new asset?
As trade-in value of old asset is 8000 which is deducted from price of new asset and actual cash paid to acquire new asset is 122000 so the base value for new asset will be 122000.
What is the estimated salvage value of a fixed asset?
1. Estimated salvage value is the amount which is expected to be received from disposal of fully depreciated asset after useful life of asset.
How can one determine the salvage value of an asset?
The salvage value of an asset can be determined by estimating the amount of money that could be obtained by selling the asset at the end of its useful life. This value is typically based on factors such as the condition of the asset, market demand, and any salvageable parts or materials.
What is historical cost?
Historical cost is the cost of an item when it was originally acquired. Historical cost does not reflect the change of value over time that an asset undergoes.
How do you remove a completely depreciated fixed asset from your fixed asset accounts?
Debit Accumulated Depreciation and Credit the Fixed Asset account for the capitalized value; however, if you still own the asset, you should not remove it.
Jan 2 06 K acquired equipment for 260000 The estimated life is 5 yrs or 40000 hrs The residual value is 20000 What is the book value of asset on Dec 31 07 if K uses straight line method of depreciatio?
Value of asset: Cost price - accumulated depreciation annual depreciation = (260000-20000 ) / 5 = 48000 Value of asset = 260000 - (48000 *2) 96000 = 164000
Liquidation value of the firm asset could be considered as?
The average wealth of shareholder
The book value of an asset is the same as market value of the asset?
Book value of an asset is the value which is shown in books of accounts while market value of asset is the value which is currently same asset is selling in market so both of these values are not same but it can be same but normally they are not same.
When an asset is sold a gain occurs when the?
Gain on sale of asset is occured when actual value of asset is less then the sale value of asset.
How to find the salvage value of an asset?
To find the salvage value of an asset, subtract the estimated disposal costs from the asset's current market value. This value represents the amount the asset is expected to be worth at the end of its useful life.
How can one determine the salvage value of an asset and what factors should be considered in calculating it?
The salvage value of an asset can be determined by estimating the amount it could be sold for at the end of its useful life. Factors to consider in calculating salvage value include the asset's condition, market demand, age, and any remaining useful life.
