BU127 Lecture 8: BU-127 Lecture 8

• School: WLU
• Department: Business
• Course: BU127
• Professor: James Moore

Document Summary

Tangible: physical substance, land, depreciation assets, natural resources. Intangible: no physical substance, patents, copyrights, trademarks, etc. Measures a (cid:272)o(cid:373)pa(cid:374)y"s a(cid:271)ility to ge(cid:374)erate sales given an investment in fixed assets (cid:1832)(cid:1876)(cid:1857)(cid:1856) (cid:1871)(cid:1871)(cid:1857)(cid:1872) (cid:1846)(cid:1873)(cid:1870)(cid:1866)(cid:1867)(cid:1874)(cid:1857)(cid:1870)= (cid:1857)(cid:1872) (cid:1845)(cid:1853)(cid:1864)(cid:1857)(cid:1871) (cid:1844)(cid:1857)(cid:1874)(cid:1857)(cid:1866)(cid:1873)(cid:1857) (cid:1874)(cid:1857)(cid:1870)(cid:1853)(cid:1859)(cid:1857) (cid:1857)(cid:1872) (cid:1832)(cid:1876)(cid:1857)(cid:1856) (cid:1871)(cid:1871)(cid:1857)(cid:1872)(cid:1871) Includes the purchase price and all expenditures needed to prepare the asset for its intended use: does not include financing charges and cash discounts. Buildings: purchase price, renovations, legal and realty fees, title fees. Equipment: purchase price, installation, modifications, transportation. Land: purchase price, realtor commissions, title insurance premiums, delinquent taxes, surveying fees, title search and transfer fees. Record at the current market value of the consideration given, or the current market value of the asset acquired. Asset cost includes: all materials and labour for construction, overhead fees. The total cost of a combined purchase of land and building is separated on the basis of their relative market values.