The fair value of plant and Machinery was, however OMR 200,000. The company will incur OMR 50,000 of direct acquisition costs and OMR 10,000 in stock issue costs. What is the journal entry acquisition of cost expenses? Select one: a. Acquisition cost expenses Dr 50,000 Cash Cr 50,000 b. Acquisition cost expenses Dr 10,000 Cash Cr 10,000 c. Acquisition cost expenses 200,000 Cash Cr 200,000 d. None of the other points
Depreciation Methods
The word "depreciation" is defined as an accounting method wherein the cost of tangible assets is spread over its useful life and it usually denotes how much of the assets value has been used up. The depreciation is usually considered as an operating expense. The main reason behind depreciation includes wear and tear of the assets, obsolescence etc.
Depreciation Accounting
In terms of accounting, with the passage of time the value of a fixed asset (like machinery, plants, furniture etc.) goes down over a specific period of time is known as depreciation. Now, the question comes in your mind, why the value of the fixed asset reduces over time.
The fair value of plant and Machinery was, however OMR 200,000. The company will incur OMR 50,000 of direct acquisition costs and OMR 10,000 in stock issue costs. What is the journal entry acquisition of cost expenses? Select one: a. Acquisition cost expenses Dr 50,000 Cash Cr 50,000 b. Acquisition cost expenses Dr 10,000 Cash Cr 10,000 c. Acquisition cost expenses 200,000 Cash Cr 200,000 d. None of the other points
Step by step
Solved in 2 steps with 1 images
