• land imporvements 
• structural additions made to the land. cos includes all expenditures necessary to make the improvements ready for their intended use
• examples: driveways, parking lots,fences 
• equiptment 
• include all costs incurred in acquiring the equptment and preparing it for use 
• costs typically include: 
• cash purchase price 
• sales taxes 
• determining the cost of plant assets 
• lenard company purchases a delivery truck at a cash
• expenditures during useful life 
• ordinary repairs are expenditures to maintain the operating efficency and productive life of the unit 
• debit to maintanace and repair expense 
• reffered to as revenue expenditures 
• additions and improvements are costs incurred to increase the operating efficency, productive capacity, or useful life of a plant asset 
• cost: all expenditures 
• depreciation methods 
• managment selects the method it believes best measures an asset's contribution to revenue over its useful lif 
• examples include:  
• straight - line method 
• units-of-activity method 
• declining-balance method 
• depreciation methods 
• managment selects the method it believes 
• barbs florists purchased a small delivery tryck 
• strught line method 
• expense is same amount for each year 
• depreciation cost = cost less salvage value 
• think of salvage value in every type of depreciation 
• declining-balance method 
• accelerated method 
• revising periodic depreciation 
• Arcadia HS, purchased equiptment which was estimated to have a useful lif of 10 years with a slavage value of 10,000 at the end of that time. Depreciation has been recorded for 7 years 
• companies dispose of plant assets 
• hobart enterprises retires its computer printers, which cost 32,000. The accumulated depreciation on these printers is 32,000. 
• sinset company discatds delivery equiptment that cost 18,000 and has accumulated depreciation of 14000. The journal entry is ? 
• sale of plant asset 
• on july 1,2017. wright company sells office furniture for 16,000 cash. The office furniture originall cost 60,00. As of january 7. it had accumulated depreciation of 41,000. depreciation for the first six months 
• lane coal company invests $5 million in a mine 
• intangiable assets 
• patents 
• copyrights 
• goodwill 
• trademarks 
• franchise 
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