Chapter 9 Notes

Chapter 9 Notes - Chapter 9 Notes: Plant Assets, Natural...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Chapter 9 Notes: Plant Assets, Natural Resources, and Intangible Assets -Plant assets=fixed assets -reported at cost; includes necessary expenditures to get the asset and get it ready for use -cost of land includes: cash purchase price, closing costs (title & attorney), broker fees, accrued property tax, and liens assumed by purchaser -debit land for acts to make it ready for use -land improvements (construction) separate, can depreciate -debit buildings for all expenditures to purchase/for construction of a building -includes interest costs incurred (only during construction period) -Equipment does not include insurance/licensing -3 classes of plant assets that depreciate: land improvements, buildings, equipment -LAND is not a depreciable asset -3 factors that affect the computation of depreciation: cost, useful life, salvage value -Straight Line Method -cost—salvage value=depreciable cost - depreciable cost/useful life (years)=annual depreciation expense -annual rate of depreciation, prorated if mid-year
Background image of page 1

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

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 11/15/2011 for the course ACCT 272 taught by Professor Mensah during the Fall '08 term at Rutgers.

Page1 / 2

Chapter 9 Notes - Chapter 9 Notes: Plant Assets, Natural...

This preview shows document pages 1 - 2. Sign up to view the full document.

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