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The Company Recently Acquired Factory Equipment B) C) D)

Question 60

Multiple Choice

The company recently acquired factory equipment.Which of the following costs should be included in the depreciable amount of the equipment?


A)
 Staff training to  operate equipment  Installation  costs  Equipment modifications  before it was ready for use  Purchase  price  Yes  Yes  No  Yes \begin{array} { | c | c | c | c | } \hline \begin{array} { c } \text { Staff training to } \\\text { operate equipment }\end{array} & \begin{array} { c } \text { Installation } \\\text { costs }\end{array} & \begin{array} { c } \text { Equipment modifications } \\\text { before it was ready for use }\end{array} & \begin{array} { c } \text { Purchase } \\\text { price }\end{array} \\\hline \text { Yes } & \text { Yes } & \text { No } & \text { Yes } \\\hline\end{array}
B)
 Staff training to  operate equipment  Installation  costs  Equipment modifications  before it was ready for use  Purchase  price  No  Yes  Yes  Yes \begin{array} { | c | c | c | c | } \hline \begin{array} { c } \text { Staff training to } \\\text { operate equipment }\end{array} & \begin{array} { c } \text { Installation } \\\text { costs }\end{array} & \begin{array} { c } \text { Equipment modifications } \\\text { before it was ready for use }\end{array} & \begin{array} { c } \text { Purchase } \\\text { price }\end{array} \\\hline \text { No } & \text { Yes } & \text { Yes } & \text { Yes } \\\hline\end{array}
C)
 Staff training to  operate equipment  Installation  costs  Equipment modifications  before it was ready for use  Purchase  price  No  Yes  No  Yes \begin{array} { | c | c | c | c | } \hline \begin{array} { c } \text { Staff training to } \\\text { operate equipment }\end{array} & \begin{array} { c } \text { Installation } \\\text { costs }\end{array} & \begin{array} { c } \text { Equipment modifications } \\\text { before it was ready for use }\end{array} & \begin{array} { c } \text { Purchase } \\\text { price }\end{array} \\\hline \text { No } & \text { Yes } & \text { No } & \text { Yes } \\\hline\end{array}
D)
 Staff training to  operate equipment  Installation  costs  Equipment modifications  before it was ready for use  Purchase  price  Yes  Yes  Yes  Yes \begin{array} { | c | c | c | c | } \hline \begin{array} { c } \text { Staff training to } \\\text { operate equipment }\end{array} & \begin{array} { c } \text { Installation } \\\text { costs }\end{array} & \begin{array} { c } \text { Equipment modifications } \\\text { before it was ready for use }\end{array} & \begin{array} { c } \text { Purchase } \\\text { price }\end{array} \\\hline \text { Yes } & \text { Yes } & \text { Yes } & \text { Yes } \\\hline\end{array}

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