MGMT 20000 Lecture Notes - Lecture 17: Intangible Asset

• School: Purdue University
• Department: Management
• Course: MGMT 20000
• Professor: Frank Kane

Document Summary

Identify the major types of property, plant and equipment. Land includes the cost of the land and all expenditures necessary to get the land ready for its intended use. Permanent account costs are not allocated to future accounting periods. Any land related expenditures that have a limited life are classified as improvements and the cost allocated over the asset"s useful life. Costs to get land ready for use: purchase price of land, broker commissions or other fees, back property taxes, cost of removing an existing building less any salvage proceeds, cost of clearing or leveling the land. Land improvements are amounts spent to improve the land. Parking lots, sidewalks, driveways, landscaping, lightening systems, fences, and irrigation systems. Administrative offices, retail stores, manufacturing facilities, and storage warehouses . Costs of getting a building ready for use include items such as: Recurring costs such as utilities and insurance are expensed as incurred.