ACCOUNTG 221 Lecture Notes - Lecture 11: Fair Market Value
13 Jan 2017
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Tangible assets have a physical presence; they can be seen and touched. Property, plant, equipment (pp&e)- sometimes called plant assets or fixed assets or fixed assets. We depreciate these assets over their useful life. Natural resources- mineral deposits, oil and gas reserves, timber stands, coal mines, and stone quarries are some examples of natural resources: we deplete these assets over their useful life. Land- has an infinite life and is not subject to depreciation. Is a part of pp&e but does not deprecate like them. Intangible assets with identifiable useful lives- these tangibles include patents and copyrights. We amortize the cost of each over its useful life. Intangible assets with indefinite useful lives- these intangibles include renewable franchises, trademarks, and goodwill. The cost of these assets is not expensed unless it can be shown that there has been an impairment in value. (not going into detail on this) Purchased land and a building for ,000,000 cash.
