BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -Original cost is the total price associated with the purchase of an asset. The original cost of an asset takes into consideration all of the items that can be attributed to its purchase and to putting the asset to use.

Detailed explanation-2: -Cost of the Assets This is defined as the original price of the asset from which we can determine its depreciated value over the course of its useful life. Cost of assets represents the monetary costs involved in acquiring, installing and commissioning assets.

Detailed explanation-3: -Cost of the asset – Estimated salvage value: $100, 000 – $20, 000 = $80, 000 total depreciable cost. Useful life of the asset: 5 years.

Detailed explanation-4: -Assets are recorded on the balance sheet at cost, meaning that all costs to purchase the asset and to prepare the asset for operation should be included. Costs outside of the purchase price may include shipping, taxes, installation, and modifications to the asset.