When a Company Replaces a Component of Property, Plant and Equipment

question 55

Multiple Choice

When a company replaces a component of property, plant and equipment, which statement below does not account for one of the steps in the process?

• A) book value of the replaced component is written off to depreciation expense
• B) the asset cost of the replaced component is credited
• C) any cost to remove the old component is charged to expense
• D) the identifiable direct costs associated with the new component are capitalized

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Definitions:

Reinforcer

Any stimulus that strengthens or increases the probability of a specific response or behavior by providing a consequence an individual finds rewarding.

Desired Behavior

This refers to the specific actions or reactions that an individual or organization aims to elicit from another party.

Primary Reinforcers

Innate reinforcing qualities such as food, drink, and pleasure, which do not require learning to become effective in shaping behavior.

Contingent Reinforcement

A method where the provision of rewards or consequences is directly dependent on the display of specific behaviors.