Acct 221 1st Edition Lecture 14 Outline of Last Lecture 1 Uncollectible Accounts a Write Of b Reinstatement Outline of Current Lecture 2 Tangible Long Term Assets 3 Intangible Assets 4 Capitalize vs Expense Current Lecture Inventory turnover rate Perpetual method Tangible long term asset 1 Property plant and equipment sometimes called plant assets or fixed assets We depreciate these assets over their useful life a Fixed assets depreciation expense 2 Natural Resources mineral deposits oil and gas reserves timber stands coal mines and trade a Natural resource 3 Land has an infinite life and is not subject to depreciation Intangible Assets 1 Intangible Assets with an identifiable useful life these intangibles include patents and copyrights We amortize the cost of each over its useful life These notes represent a detailed interpretation of the professor s lecture GradeBuddy is best used as a supplement to your own notes not as a substitute 2 Intangible Assets with Indefinite Useful Lives The intangibles include renewable franchises trademarks and goodwill The cost of these assets is not expenses unless it can be shown that there has been impairment in value Capitalize vs Expense Capitalize it Extends its life adds value maintenance and repairs are not capitalized they are expenses
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