MGCR 211 Lecture Notes - Lecture 9: Intangible Asset, Balance Sheet, Accelerated Depreciation
Document Summary
Chapter 9: reporting and analyzing long lived assets. Resources held for an extended period of time, that provide future economic benefit for a number of future periods. Since there is a large amount of money spent to acquire a long lived asset, it required long term debt financing. Immediately charged as an expense: capital expenditures. Cost of ppe = (purchase price) + (transportation costs) + (preparation costs) + (future obligations end of life) Purchase price includes taxes & duties and discounts. Transportation costs costs associated with bringing asset to its intended location. Preparation costs costs with preparing asset for use. Future obligations for end of life costs related to dismantling/removing the asset at the end of its life. Unlimited life therefore, is not depreciated. Cost: purchase price, commissions, legal fees, back property taxes paid (unpaid taxes from previous years) Cerone julia: removing unwanted buildings, any cost used to prepare land for use.
