ACG 2021 Lecture Notes - Lecture 8: Intangible Asset, Asset, Tangible Property
Document Summary
Participation questions: t/f: nike was used as an example for the intangible asset of trademarks, what company committed fraud by capitalizing billion of costs instead of properly expensing them? (target, worldcom, jc penny, albright mobile. Categories of long-term assets: tangible: property, plant and equipment. Physical: depreciation expense, intangible: patents, trademarks, copyrights. Purchase of long-term assets: measuring the cost of a plant asset: sum of all costs incurred to bring the asset to its intended use, cost + all expenditures necessary. Lump-sum (basket) purchases: allocation of the cost to each long-term asset account when more than one asset category is purchased. 1 calculate % each asset account is of the total market value of the asset bundle purchased. 2 multiply each asset a(cid:272)(cid:272)ou(cid:374)t"s % (cid:271)(cid:455) the total cost of the asset (cid:271)u(cid:374)dle. Amortization: residual value amount the company expects to receive from selling the asset at the end of its service life.
