Accounting Advanced, 9E: Chapter 08

Terms in this set (11)

assessed value
the value of an asset determined by tax authorities for the purpose of calculating taxes
book value of a plant asset
the original cost of a plant asset minus accumulated depreciation
declining-balance method of depreciation
multiplying the book value at the end of each fiscal period by a constant depreciation rate
depletion
the decrease in the value of a plant asset because of the removal of a natural resource
Modified Accelerated Cost Recovery System
a depreciation method required by the Internal Revenue Service to be used for income tax calculation purposes for most plant assets placed in service after 1986
personal property
all property not classified as real property
plant asset record
an accounting form on which a business records information about each plant asset
production-unit method of depreciation
calculating estimated annual depreciation expense based on the amount of production expected from a plant asset
real property
land and anything attached to it
straight-line method of depreciation
charging an equal amount of depreciation expense for a plant asset in each year of useful life
sum-of-the-years'-digits method of depreciation
using fractions based on the number of years of a plant asset's useful life
YOU MIGHT ALSO LIKE...
;