Accounting Categories (Debit and Credit Balances) - Financial Accounting (FAC)
All for this textbook (33)
Written for
Hanzehogeschool Groningen (Hanze)
International Business and Management Studies
FAC2
All documents for this subject (13)
Seller
Follow
amy5430
Reviews received
Content preview
Plant Assets, Natural
Resources, and Intangible
Assets
Chapter Number Chapter 9
Plant Assets, Natural Resources, and Intangible Assets 1
, 📖 Table of Contents
Outline
9.1 Plant Asset Expenditures
Determining the Cost of Plant Assets
Land
Buildings
Equipment
Expenditures During Useful Life
9.2 Depreciation Methods
Factors in Computing Depreciation
Depreciation Methods
Straight-line
Units-of-activity
Declining-balance
Component Depreciation
Depreciation and Income Taxes
Revaluation of Plant Assets
Gain Situation
Loss Situation
Revising Periodic Depreciation
9.3 Plant Asset Disposals
Retirement of Plant Assets
Sale of Plant Assets
Gain on Sale
Loss on Sale
9.4 Natural Resources and Intangible Assets
Natural Resources and Depletion
Intangible Assets
Accounting for Intangible Assets
Research and Development Costs
9.5 Statement Presentation and Analysis
Analysis
9.6 Exchange of Plant Assets
Loss Treatment
Gain Treatment
9.1 Plant Asset Expenditures
Plant Assets, Natural Resources, and Intangible Assets 2
, ⚠️ Plant assets are resources that have three characteristics.
1. They have a physical substance (a definite size and shape)
2. are used in the operations of a business
3. are not intended for sale to customers.
They are also called property, plant, and equipment; plant and equipment; and
fixed assets.
Determining the Cost of Plant Assets
📍 Cost consists of all expenditures necessary to acquire the asset and
make it ready for its intended use.
For example
→ purchase price
→ freight costs paid by the purchaser
→ installation costs.
Land
💰 The cost of land includes:
(1) the cash purchase price
(2) closing costs such as title and attorney’s fees
(3) real estate brokers’ commissions
(4) accrued property taxes and other liens assumed by the purchaser
Plant Assets, Natural Resources, and Intangible Assets 3
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller amy5430. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $7.05. You're not tied to anything after your purchase.
