Response to the following :
The following questions are unrelated except that they all apply to fixed assets and intangible assets:
a. The manager of Ladue Company regularly buys plant assets and debits the cost to Repairs and Maintenance Expense. Why would he do that, since this action violates generally accepted accounting principles (GAAP)?
b. The manager of Clarkson Corporation regularly debits the cost of repairs and maintenance of plant assets to Plant and Equipment. Why would she do that, since she knows she is violating GAAP?
c. It has been suggested that, because many intangible assets have no value except to the company that owns them, they should be valued at $1.00 or zero on the balance sheet. Many accountants disagree with this view. Which view do you support? Why?