Types of Assets
Property plant and equipment is what kind of asset?
What is tangible asset?
All expenditures necessary to bring the set to its desired condition and location for use is called
What is capitalized cost.
The acquisitions value of the newly issued debts/stocks equals?
What is the present value?
When evaluating intangible assets what cost are not able to be capitalized?
What is internal R&D?
Exclusive right to display a word, a slogan, a symbol, or an emblem that distinctively identifies a company, product or service is know as?
What is Trademarks.
The purchase price and all expenditures necessary to bring the asset to its desired condition and location for use are part of the?
What is initial cost?
Issuing debt is one way for a company to acquire cash. What is the other way?
What is issuing stocks?
When purchasing equipment the value of the equipment is it's purchase price less what?
What is discounts?
What asset is not depreciable?
What is land?
What cost may not be capitalized?
What is recurring & maintenance costs
Company A bought a table and chair for $1500. The fair value of the table is $1200 and the fair value of the chair is $400. What is the allocated amount for the table?
What is $1125?
Company A bought a machine for $600,000 dollars. They also had cost of installation of $50,000 and spent another $30,000 testing it before brining it into service. What is the value of the asset?
What is $680,000?
What type of assets is depleted instead of depreciated?
What is natural resources?
When recording an asset with an unknown cost, what value should be used in capitalization of that asset?
What is Fair value?
Company A stock is valued at $30 per share and is looking to buy a piece of land worth $600,000. How many shares will Company A have to issue in exchange for the land?
What is 20,000 shares?
Company A paid $1,000,000 to purchase all of James Company’s assets and assumed Company B's liabilities of $200,000. Company B's assets were valued at $600,000. What is the goodwill that Company A will record on its books?
What is $600,000?
This has a life of the creator + 70 years.
What is a copyright?
After the depletion of a natural resources companies are required to return the land to its original condition. It is a liability known as.
What is asset retirement obligation?
Mikes Management purchased land with a building on it for $800,000. In addition to the purchase price, Mike made the following expenditures related to the acquisition: broker's commission $25,000, title insurance $5,000, and misc closing cost of $7,000. An independent appraisal of the land valued the land at $600,000 and the building for $400,000. What is amount that should be capitalized for the land?
What is $502,200?
Jim bought a car for $30,000. Also included were tax and title fees of $1,000 and registrations of $500. He also prepaid an upcoming excise tax bill of $1000. What is the value of Jim's asset?
What is $31,500?