ACCT 1220 Lecture Notes - Lecture 15: Book Value, Operating Expense
16 Mar 2017
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Are used in the operation of a business. Determining the cost of property, plant and equipment. Purchase price, including non-refundable taxes and duties, less discounts or rebates. Expenditures necessary to bring asset to its intended location and make it ready for its intended use. Estimated cost of future obligations to dismantle, remove or restore the asset at the end of its useful life. Closing costs such as title and legal fees. Additional costs to prepare land for its intended use (less any proceeds from salvage) Land has an unlimited life, therefore it is not depreciated. The costs of structural additions made to land (such as paving, fencing, and sidewalks) Not one-time costs of getting the land ready to use. All expenditures related to the purchase or construction of a building. When a building is purchased such costs include. Costs required to make building ready for its intended use. When a building is constructed, its cost consists of:
