ECON 0710 Lecture Notes - Lecture 10: Accelerated Depreciation, Intangible Asset, Fixed Asset

• School: Brown University
• Department: Economics
• Course: ECON 0710
• Professor: Frank Sciuto

Document Summary

Owned and used by company in normal operations. Important to figure out initial cost and amortization rate: patent. Exclusive rights to produce and sell a certain good. Reviewed periodically for impaired value: goodwill. Intangible asset of a business that is created from favorable factors. Recorded as difference between purchase value and market value. Journal entry of impaired goodwill: loss from impaired goodwill. Extend its useful life: asset improvements is capital. Adding a new engine to a car so you would. Debit the fixed asset, credit cash: extraordinary repairs that increase shelf life. Revise depreciation for current and future periods. Usually maintenance: ordinary maintenance and repairs is. Company paid for a new hydrolic lift for the truck and for an oil change. Lease is a contract for the use of an asset for a period of time: lessor is party who owns it, lessee is party to whom the rights are granted by lessor.