12. Why is depreciation often ignored when estimating the value of tools?
13. Upon what basis should tools made in the home factory be valued?
14. When might it be proper to capitalize expenditures made for the rearrangement of machinery within the plant?
15. Will the capitalization of this expense affect profits considered over the life of the asset?
16. State the basis for valuing: (a) Furniture and fixtures. (b) Delivery equipment. (c) Carriers and containers. (d) Patterns, molds, electrotypes, etc.
17. Show the entries necessary to book the disposal of an asset subject to depreciation.
Chapter XVII
1. What objection is there to the account title “real estate”?
2. What items enter into the cost of buildings?
3. What is the basis for valuing: (a) Buildings? (b) Betterments on leased buildings?