Chapter 9 - Chapter 9 Class Notes Reporting and...

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We only cover pp.382-396 of this chapter Accounting for Long-Lived Tangible Assets There are three accounting issues that we must address regarding 1. Acquisition – determining the cost of the asset and entry to record the purchase 2. Depreciation – allocating the cost of the asset over its useful life 3. Disposal – recording the disposal/sale of the asset Includes the purchase price plus all reasonable and necessary costs incurred to get the asset in place and ready to use. Land – purchase price, commissions, legal fees, escrow fees, surveying fees, clearing and grading costs Land Improvements (landscaping, paving, fencing) – cost of improvements, including materials, labor, and overhead Building – purchase price, commissions, reconditioning costs Chapter 9 Class Notes Reporting and Interpreting Long-Lived Compiled by: Janice H. Fergusson, CPA Certain Materials used with permission of The McGraw-Hill Companies, Inc.
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This note was uploaded on 06/06/2011 for the course ACCT 225 taught by Professor Canace during the Spring '08 term at South Carolina.

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Chapter 9 - Chapter 9 Class Notes Reporting and...

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