ACCT 217 Lecture Notes - Lecture 20: The Purchase Price, Title Search, Book Value

123 views5 pages

Document Summary

Property, plant and equipment are non-current tangible assets that a company controls and are not intended for sale to customers. Most companies record ppe at cost, which includes; The expenses required to bring the asset to its intended place for its intended use. An estimate of any future asset retirement obligations (aro) Expenses are broken down into operating expenses and capital expenses. Operating expenses bene t only the current period and are recorded on the income statement in the period in which they occur. Capital expenses have bene t in future period, are added to the cost of the non-current asset, recorded on the balance sheet, and depreciated along with it. Ppe is often subdivided into land, land improvements, buildings, and equipment. All costs related to the purchase of land including closing costs such as survey, building removal, title search and legal fees are added to the land account.

Get access

Grade+20% off
$8 USD/m$10 USD/m
Billed $96 USD annually
Grade+
Homework Help
Study Guides
Textbook Solutions
Class Notes
Textbook Notes
Booster Class
40 Verified Answers
Class+
$8 USD/m
Billed $96 USD annually
Class+
Homework Help
Study Guides
Textbook Solutions
Class Notes
Textbook Notes
Booster Class
30 Verified Answers

Related Documents

Related Questions