Chapter 10 Long-Term Assets

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Table of Contents

Chapter 10 Long-Term Assets

LEARNING OBJECTIVES

LEARNING OBJECTIVES (continued)

LEARNING OBJECTIVES (continued)

Management Issues Related to Accounting for Long-Term Assets

Characteristics of Long-Term Assets

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Deciding to Acquire Long-Term Assets

Financing Long-Term Assets

Applying the Matching Rule to Long-Term Assets

Questions about the Acquisition, Use, and Disposal of Each Long-Term Asset

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Discussion

Acquisition Cost of Property, Plant, and Equipment

Expenditures

Costs of Land

Costs of Land Improvements

Costs of Buildings

Costs of Equipment

Costs of Group Purchases

Costs of Group Purchases

Discussion

Accounting for Depreciation

Definition of Depreciation

Features of Depreciation

Four Factors That Affect the Computation of Depreciation

Four Factors That Affect the Computation of Depreciation (continued)

Accounting for Depreciation

Accounting for Depreciation

Discussion

Methods of Computing Depreciation

Straight-Line Method

Straight-Line Method

Depreciation Schedule, Straight-Line Method

Methods of Computing Depreciation

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Depreciation Schedule, Production Method

Methods of Computing Depreciation

Declining-Balance Method

Computation of Declining-Balance Method

Depreciation Schedule, Double-Declining-Balance Method

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Discussion

Disposal of Depreciable Assets

Depreciation for Partial Year

Depreciation for Partial Year

Discarded Plant Assets

Plant Assets Sold for Cash: No Gain or Loss

Plant Assets Sold for Cash: Loss Recorded

Plant Assets Sold for Cash: Gain Recorded

Discussion

Exchanges of Plant Assets

Recognizing Gains and Losses on Exchanges

Discussion

Accounting for Natural Resources

Accounting for Natural Assets

Depletion

Depletion

Depreciation of Closely Related Plant Assets

Development and Exploration Costs in the Oil and Gas Industry

Discussion

Accounting for Intangible Assets

Intangible Assets

Accounting Issues for Intangible Assets

Related Journal Entries for Intangible Assets

Related Journal Entries for Intangible Assets

Related Journal Entries for Intangible Assets

Research and Development Costs

Computer Software Costs

Goodwill

Discussion

Special Problems of Depreciating Plant Assets

Depreciation for Partial Years

Depreciation for Partial Years

Revision of Depreciation Rates

Example Computation of Revised Depreciation Rates

Example Computation of Revised Depreciation Rates

Group Depreciation

Special Types of Capital Expenditures

Special Types of Capital Expenditures (continued)

Modified Accelerated Cost Recovery System

Cost Recovery for Federal Income Tax Purposes

Discussion

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Author: Needles & Powers