Explain the reason for not reporting property and equipment at fair value except in specified circumstances. What do our OER textbook authors say is normally used as a guideline

Answer and Explanation:

Property, Plant and Equipment(PPE) are reported are reported at book value in the balance sheet statement. Over it's useful life, depreciation is allocated as expense to PPE and accumulated depreciation is calculated for total of depreciation expense to get net book value(cost less depreciation expense). PPE is only reported at fair value when it is going to be sold or it is damaged/impaired asset. Otherwise it is not useful to report PPE at fair value in the statement.

u = 30

continuing your method

= +

subtract from both sides

= - thus

= -

= ⇒ u = 30