BU127 Lecture Notes - Lecture 15: Tax Shield, Historical Cost, Westjet
6
BU127 Full Course Notes
Verified Note
6 documents
Document Summary
Bu127 lecture #15: reporting and interpreting property, plant, and equipment; natural resources; and intangibles. Understanding the business insufficient capacity results in lost sales costly excess capacity reduces earnings. Fixed asset turnover this ratio measures a company"s ability to generate sales given an investment in fixed assets. Modification to building necessary to install equipment transportation costs: i. e. land purchase price real estate commissions title insurance premiums delinquent taxes surveying fees title search and transfer fees. Land is not depreciated record at the current market value of the consideration given, or the current market value of the asset acquired, whichever is more clearly evident. Acquisition by construction asset cost includes: all materials and labour traceable to the construction, a reasonable amount of overhead, interest on debt incurred during the construction. The appraised values are building, 000, and land, 000. Revenue maintenance: maintains normal operating condition, does not increase productivity.
