ACT 205 Study Guide - Midterm Guide: Car Rental, Walmart, Contingent Liability
Document Summary
Can also include costs to raze a building, drain and fill the land. Proceeds from the sale of salvaged materials are deducted from the cost. *recurring costs such as insurance and property taxes are expensed as they are incurred in order to properly match them with revenues. Purchasing more than one asset at the same time for one purchase price. Often the estimated fair (appraised) values of the individual assets exceed the total purchase price. Total purchase price is allocated to each asset"s separate account based on their relative fair value of the asset. Rights, privileges, and competitive advantages that result from ownership of long-lived assets that do not possess physical substance. When we expense intangible assets over their useful lives, we call it amortization. Companies can either purchase or create intangible assets internally. *record purchased intangible assets at their original cost plus all other costs, such as legal and filing fees, necessary to get the asset ready for use.
