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:

During Surgery

The period in which surgical operations are performed on a patient under medical supervision.

After Surgery

After surgery, also known as postoperative, refers to the period following a surgical procedure, a critical time for recovery and monitoring for complications.

Active Role

Participation or involvement in an activity or process in a dynamic, engaged manner.

Cultural Beliefs

The shared values, traditions, norms, customs, arts, history, folklore, and institutions of a group of people.