Different types of assets are accounted for in different ways . The government p

ID: 2425285 • Letter: D

Question

Different types of assets are accounted for in different ways. The government purchased or constructed the following assets:

A monument to honor the sailors who served in the U.S. Coast Guard

Land to be incorporated into a national forest

Oil to be held in reserve to cover temporary shortages

An office building for the Government Accountability Office

Oil to be used in a government-owned utility that generates and sells electric power

Operating room equipment for a Veterans Administration hospital

A navy fighter plane

A historical building that is being used—and will continue to be used—to house federal offices.

For each, indicate whether it should be:

a. Capitalized and depreciated (or amortized) over its useful life

b. Capitalized but not depreciated (or amortized)

c. Expensed as acquired and described in notes

d. Reported either at historical cost (based on either the FIFO or the weighted average methods) or at latest acquisition cost

e. Reported only at historical cost

1. A monument to honor the sailors who served in the U.S. Coast Guard -- constructed

e. Reported only at historical cost

2.Land to be incorporated into a national forest -- purchased

b. Capitalized but not depreciated (or amortized)

3.Oil to be held in reserve to cover temporary shortages -- purchased

d. Reported either at historical cost (based on either the FIFO or the weighted average methods) or at latest acquisition cost

4.An office building for the Government Accountability Office -- constructed

a. Capitalized and depreciated (or amortized) over its useful life

5.Oil to be used in a government-owned utility that generates and sells electric power -- purchased

c. Expensed as acquired and described in notes

6.Operating room equipment for a Veterans Administration hospital -- purchased

a. Capitalized and depreciated (or amortized) over its useful life

7.A navy fighter plane -- purchased

a. Capitalized and depreciated (or amortized) over its useful life

8.A historical building that is being used—and will continue to be used—to house federal offices.

e. Reported only at historical cost

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