Response to the following questions:
1. What characteristics of a plant asset make it different from other assets?
2. What is different between land and land improvements?
3. Why is the cost of a lump-sum purchase allocated to the individual assets acquired?
4. Does the balance in the Accumulated Depreciation- Machinery account represent funds to replace the machinery when it wears out? If not, what does it represent?
5. Why is the Modified Accelerated Cost Recovery System not generally accepted for financial accounting purposes?