cash 10000 loss on disposal of equipment 1000

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Unformatted text preview: ent account (since no longer have either of these assets!) Cash $10,000 Loss on Disposal of Equipment $1,000 Accumulated Depreciation $9,000 Equipment $20,000 Natural Resources and Intangibles Natural Resources: Assets that occur in nature (oil, gas, silver mines, timber, etc.). When acquired or developed they are recorded at cost, and as the natural resources are "used up" then process of allocating cost is called depletion (instead of depreciation). Calculated like the units of production depreciation method. Intangible Assets: Recorded at acquisition cost (only if they have been purchased). If developed internally by the company, they must expense the costs of developing it (as they are incurred). • An intangible asset with a definite life (that has been purchased) is amortized over its useful life (Similar to depreciation, using straight line method, but called amortization if it is an intangible asset) An intangible asset with an indefinite life (like goodwill) is NOT amortized. But, it is reviewed annual...
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This note was uploaded on 01/23/2014 for the course ACG 2021 taught by Professor Linkovich during the Spring '08 term at University of South Florida - Tampa.

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