MGMT 20000 Chapter Notes - Chapter 7: Intangible Asset, Income Statement, United States Copyright Office

• School: Purdue University
• Department: Management
• Course: MGMT 20000
• Professor: Frank Kane

Document Summary

We record a long-term at its cost plus all expenditures necessary to get the asset ready to use. Most capitalized expenditures are expensed over time as the asset is used in company operations. Costs plus all expenditures necessary to get the asset ready for use. The cost of acquiring a building usually includes relator commissions and legal fees in addition to the purchase price. The cost of equipment is the actual price plus all other costs necessary to prepare the asset for use. Natural resources- assets like oil, natural gas and timber that we can physically use up or deplete. Intangible assets-long-term assets that lack physical substance and whose existence is often on a legal contract. We record purchases intangible assets at their original cost + all other costs, such as legal fees, necessary to get the asset ready for use.