06 Long Term Assets - Economics 6.LongTermAssets 1...

Info iconThis preview shows pages 1–4. Sign up to view the full content.

View Full Document Right Arrow Icon
24/01/2011 1 1 Engineering Finance and Economics 6. Long Term Assets 2 Types of Long Term Assets Property, Plant and Equipment Tangible capital assets or fixed assets Intangible assets Long term investments (discussed later) 3 Cost of Asset The cost of any asset is the sum of all the costs incurred to bring the asset to its intended use Purchase price Taxes Commissions Transportation Installation …
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
24/01/2011 2 4 Long Term Assets Asset Account (Balance Sheet) Land Land improvements Plant, Equipment Natural resources Intangible assets Related Expense Account (Income Statement) None Amortization (Depreciation) Amortization (Depreciation) Amortization (Depletion) Amortization (except Goodwill) 5 Land Cost of land Purchase price Real estate commission Survey fees Legal fees Other expenditures: grading, clearing 6 7 6 Buildings: Purchase Purchase price Brokerage commissions Sales and other taxes Repairing or renovating building for its intended purpose
Background image of page 2
24/01/2011 3 7 7 7 Machinery and Equipment Purchase price less discounts Transportation charges Insurance in transit Sales and other taxes Purchase commission Installation costs Expenditures to test the asset Special platforms 8 7 8 Land improvement costs are not included in the cost of land. Land and Leasehold Improvements
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 4
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

Page1 / 9

06 Long Term Assets - Economics 6.LongTermAssets 1...

This preview shows document pages 1 - 4. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online