Adm1340 - lecture 8 - reporting and analyzing long-lived assets. Property, plant, and equipment are long-lived resources. These can be controlled by the company. These are used in the operation of a business. These are not intended for sale to customers. Unlike current assets, these provide benefits over many years. Determining the cost of property, plant, and equipment: Most companies record property, plant, and equipment at cost, which includes. Purchase price, including non-refundable taxes and duties, less discounts or rebates. Expenditures necessary to bring asset to its intended location and make it ready for its intended use. Estimated cost of future obligations to dismantle, remove or restore the asset at the end of its useful life. Operating expenditures benefit only the current period and are immediately charged as an expense. Capital expenditures benefit future periods, are capitalized in a long-lived asset account, and increases a company"s investment in productive activity. Property, plant, and equipment are often subdivided into four classes.