WGU D104 Personal Exam Solved 100%

When the book value is greater than the fair value. - ANSWER-Impairment The excess of book value over fair value. - ANSWER-Impairment loss. The cost + avoidable interest less salvage value. - ANSWER-Depreciable base. Cost of permanent landscaping - ANSWER-Land - do not depreciate. Cost of private driveways, walks, fences, and parking lots - ANSWER-Land improvements - depreciate over useful life. Pavements, street lights, sewers, and drainage systems. - ANSWER-Land - costs afterward are taken up by the city. Excavation costs - ANSWER-Building Reasons to capitalize equipment repairs and upgrades - ANSWER-Improves productivity, improves quality, or extends life Reasons to expense equipment repairs and upgrades - ANSWER-Ongoing maintenance, Tangible, life of more than one year - ANSWER-Plant assets Only asset in PPE that doesn't depreciate - ANSWER-Land Allocation of the cost of natural resources - ANSWER-Depletion Depreciated only once ready for service - ANSWER-Construction Reasons to not record depreciation - ANSWER-Asset is held for sale. Should be measured at the lower of its carrying amount or fair value less costs to sell. - ANSWER-Long term asset held for sale. Purchase, sales tax, transit costs and transit insurance, installation, assembly, testing - ANSWER-Capitalized as part of equipment Ongoing insurance, regular maintenance - ANSWER-Operating costs- expensed as incurred. Materials, labor, allocated fixed and variable overhead, - ANSWER-