Ch10_Wey_Fin_6e

Ch10_Wey_Fin_6e - Chapter 10-1 Plant Assets, Natural...

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Unformatted text preview: Chapter 10-1 Plant Assets, Natural Resources, And Intangible Assets Chapter Chapter 10 10 Financial Accounting, Sixth Edition Chapter 10-2 Plant Assets Plant Assets Determining Determining the cost of the cost of plant assets plant assets Depreciation Depreciation Expenditures Expenditures during useful during useful life life Plant asset Plant asset disposals disposals Natural Natural Resources Resources Intangible Intangible Assets Assets Statement Statement Presentation Presentation and Analysis and Analysis Presentation Presentation Analysis Analysis Accounting for Accounting for intangibles intangibles Research and Research and development development costs costs Plant Assets, Natural Resources, and Plant Assets, Natural Resources, and Intangible Assets Intangible Assets Depletion Depletion Chapter 10-3 Used in operations and not for resale. Long-term in nature and usually depreciated. Possess physical substance. Plant assets include land, land improvements, buildings, and equipment (machinery, furniture, tools). Major characteristics include: Section 1 Section 1 Plant Assets Plant Assets Referred to as property, plant, and equipment; plant and equipment; and fixed assets. Chapter 10-4 Process of cost allocation, not asset valuation. Applies to land improvements, buildings, and equipment, not land. Depreciable, because the revenue-producing ability of asset will decline over the assets useful life. Depreciation is the process of allocating the cost of tangible assets to expense in a systematic and rational manner to those periods expected to benefit from the use of the asset. Depreciation Depreciation SO 2 Explain the concept of depreciation. SO 2 Explain the concept of depreciation. Chapter 10-5 Factors in Computing Depreciation Cost Depreciation Depreciation SO 2 Explain the concept of depreciation. SO 2 Explain the concept of depreciation. Useful Life Salvage Value Illustration 10-6 Chapter 10-6 Objective is to select the method that best measures an assets contribution to revenue over its useful life. Examples include: Depreciation Methods (1) Straight-line method. (2) Units-of-Activity method. (3) Declining-balance method. Depreciation Depreciation SO 3 Compute periodic depreciation using different methods. SO 3 Compute periodic depreciation using different methods. Illustration 10-8 Use of depreciation methods in 600 large U.S. companies Chapter 10-7 Exercise (Depreciation ComputationsThree Methods) Parish Corporation purchased a new machine for its assembly process on January 2, 2007. The cost of this machine was $117,900. The company estimated that the machine would have a salvage value of $12,900 at the end of its service life. Its life is estimated at 5 years and its working hours are estimated at 1,000 hours....
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This note was uploaded on 09/09/2011 for the course ACCT 100 taught by Professor Ftom during the Spring '08 term at S.F. State.

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Ch10_Wey_Fin_6e - Chapter 10-1 Plant Assets, Natural...

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