ACC 210 Lecture Notes - Lecture 9: Payroll Tax, Balance Sheet, Current Liability

• School: Stony Brook University
• Department: Accounting
• Course: ACC 210
• Professor: Christie Comunale

Document Summary

Chapter 9: reporting and analyzing long lived assets. Cost cash paid in a cash transaction or the cash equivalent price paid. Cash equivalent price is the: fair value of the asset given up or, fair value of the asset received, whichever is more clearly determinable. Land: all necessary costs incurred in making land ready for its intended use increase (debit) Includes all expenditures necessary to make the improvements ready for their intended use: exs: driveways, parking lots, fences, landscaping, and underground sprinklers, limited useful lives, expense (depreciate) the cost of land improvements over their useful lives. Include all costs incurred in acquiring the equipment and preparing it for use: costs typically include: cash purchase price, sales taxes, freight charges, expenditures required in assembling, installing, and testing the unit. Insurance policy is for the item while it"s i(cid:374) use, (cid:374)ot (cid:449)he(cid:374) it"s i(cid:374) t(cid:396)a(cid:374)sit.