L17 Notes_Part_11 - Ordinary Expense 1. Maintains normal...

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Overview of Long-Term Assets 1. Perspective 2. Acquiring Capacity 1. Whether to?, How much to?, What kind, Make or buy? and How to finance? 3. Valuation (cost ,amortization, impairment) 1. Cost 2. Amortization (theory, approach) 4. Asset in Operation 5. Disposal, Retirement, Sale 6. Presentation in Statements
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Repairs, Maintenance, and Additions Type of Capital or Expenditure Expense Identifying Characteristics
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Unformatted text preview: Ordinary Expense 1. Maintains normal operating condition repairs and 2. Does not increase productivity maintenance 3. Does not extend life beyond original estimate Extraordinary Capital 1. Major overhauls or partial repairs replacements 2. Extends life beyond original estimate Additions Capital 1. Increases productivity 2. May extend useful life 3. Improvements or expansions...
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L17 Notes_Part_11 - Ordinary Expense 1. Maintains normal...

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