Accountancy Forum No. 9 | Plant Assets--Acquisition and Depreciation | July 25-26 2022 All Sections 1--Scott Construction paid $5000 for a plant asset that had a market value of $16500. At what amount should Scott record this plant asset in accordance with GAAP/FASB? 2--On January 1, 2023, Guagliardo Manufacturing Corporation (GMC) purchased a machine for $40700000. Guagliardo's management expects to use the machine was utilized for 3900 hours in 2023 and 5300 hours in 2024. In accordance with GAAP, Guagliardo has appropriately adopted the units-ofproduction depreciation method. In accordance with GAAP, what amount of depreciation expense should Guar 2023 and 2024? 3--Victoria plans to develop a shopping center and has spent the following amounts: Acquisition of land $18.000
Surveys and legal fees $700
Land clearing $500
Frencing $5.000
Installing lighting and signage $160
Based on these expenditures, what amount should Victoria record in the corporation's Land account in accordance with GAA? Where should any amounts--amounts not recorded to the Land account--be recorded and reported? 4--On January 1, 2023 Meredith acquired a machine for $1030000 and estimates the useful life of this asset at five years. Furthere amount of depreciation expense should Meredith report on the Income Statement for the year ended December 31,2023 ? 5--Explain how a company--subject to SEC and FASB reporting requirements--decides which costs to include in the cost of a plant asset.