Firms Initially Record Property, Plant, and Equipment, Sometimes Referred to as Fixed

Multiple Choice

Firms initially record property, plant, and equipment, sometimes referred to as fixed assets, at acquisition cost, the cash paid or the fair value of other consideration given in exchange for the asset. Which of the following is/are true?

A) Acquisition cost includes all costs necessary to prepare the asset for its intended use.
B) Firms capitalize into the asset's carrying amount subsequent expenditures that extend the service life or increase the benefits of a fixed asset beyond those initially anticipated.
C) Buildings and equipment have a finite life, so firms must depreciate their acquisition cost less estimated salvage over the expected service life.
D) Firms may use a straight-line method or accelerated depreciation methods.
E) all of the above