MGT120H5 Chapter Notes - Chapter 7: Intangible Asset, Book Value, Capital Expenditure

• School: UTM
• Department: Management
• Course: MGT120H5
• Professor: Catherine Seguin

Document Summary

Chapter #7 property, plant, and equipment, and. Tangible long-lived assets assets used in the business and not held for sale (i. e. property, plant, and equipment) Intangible assets useful because of the special rights they carry (i. e. patent, etc. ) Determining cost of an asset is the cost of any asset is the sum of all the costs incurred to bring the asset to its location and intended use. In land, land improvement expenses are not accounted for in the cost of land. Usually businesses purchase things at once (i. e. land and building) The company must identify the cost of each asset (total cost divided among the asset) Capital expenditure expenditures that increase the asset"s productivity or extend its useful life (i. e. major overhaul of a truck to extend useful life) Immediate expense costs that do not extend the asset"s productivity or its useful but maintain is to working order such as repairs. Carrying amount = cost accumulated depreciation.