PP&E-S - CORPORATE FINANCIAL REPORTING Reporting of...

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· 1 CORPORATE FINANCIAL REPORTING Reporting of Long Lived Assets Long-Lived Assets
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L ONG- L IVED A SSETS O UTLINE Property, plant and equipment Acquisition cost Use Improvement vs. maintenance Impairment Disposal Natural resources Intangible assets 2 Long-Lived Assets
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P ROPERTY, P LANT A ND E QUIPMENT Acquisition Cost What’s included in cost: all costs of acquiring the asset and getting it ready for use. 3 Long-Lived Assets
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P ROPERTY, P LANT A ND E QUIPMENT Acquisition Cost List price of machine $100,000 Shipping to the U.S. 8,000 Trucking to Boulder 1,000 Labor bringing machine into factory 170 Cost of installing machine 230 Technician travel costs 2,000 Technician labor costs 3,000 Raw material spoiled adjusting machine 100 4 Long-Lived Assets
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P ROPERTY, P LANT A ND E QUIPMENT Acquisition Cost - Interest On January 2, 2007, you get a $1,200,000, 5 year loan from a bank at 10% interest. You start constructing your warehouse that date by investing $100,000 per month in the construction.
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This note was uploaded on 05/31/2008 for the course MBAC 6080 taught by Professor Vossen during the Spring '08 term at Colorado.

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PP&E-S - CORPORATE FINANCIAL REPORTING Reporting of...

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