Asked by Rehana Shammi on May 11, 2024
Verified
The depreciable cost of a building is the same as its acquisition cost.
Depreciable Cost
The difference between a fixed asset’s initial cost and its residual value.
Acquisition Cost
The total cost associated with acquiring an asset, including the purchase price and any additional expenses necessary to get the asset ready for use.
- Comprehend the elements and computation involved in determining the acquisition cost of property, plant, and equipment.
- Grasp the factors affecting the determination of an asset's depreciable life and its residual value.
Verified Answer
ST
Shaquana TrippertMay 12, 2024
Final Answer :
False
Explanation :
The depreciable cost of a building takes into account the salvage value and estimated useful life of the building, so it is usually lower than the acquisition cost.
Learning Objectives
- Comprehend the elements and computation involved in determining the acquisition cost of property, plant, and equipment.
- Grasp the factors affecting the determination of an asset's depreciable life and its residual value.