ADM 1340 Chapter Notes - Chapter 9: Finance Lease, Operating Lease, Intangible Asset

• School: University of Ottawa
• Department: Administration
• Course: ADM 1340
• Professor: Philip Mc Ilkenny

Document Summary

Are used in the operation of a business o! Determining the cost of property, plant and equipment. Purchase price, including taxes and duties, less discounts or rebates. o! Expenditures necessary to bring assets to its intended location and make it ready for its intended use. o! If you put it in as an expense your profit goes down o! If you capitalize it then it turns into an asset. Closing costs such as title and legal fees o! 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 cost of structural additions made to land (e. g. paving, fencing) These decline in service potential over time o! All expenditure related to the purchase or construction of a building. When a building is purchased such costs include: o! Costs required to make building ready for its intended use.