What is the definition of Property, Plant, and Equipment (PPE), how is the cost capitalized, and what does site restoration treatment entail?

Question

Accepted Answer

PPE refers to tangible assets used in production, cost is capitalized by including purchase price, installation costs, and necessary modifications, site restoration treatment involves returning a property to its original state.

Property, Plant, and Equipment (PPE) are tangible assets used in production, such as buildings, machinery, and vehicles.
The cost of PPE is capitalized by including the purchase price, installation costs, and any necessary modifications to make the asset ready for use.
Site restoration treatment involves activities to return a property to its original state, such as removing contaminants, restoring natural habitats, and landscaping.
Examples of PPE include manufacturing equipment, office buildings, and company vehicles.

What is the definition of Property, Plant, and Equipment (PPE), how is the cost capitalized, and what does site restoration treatment entail?

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