Accounting Advanced, 9E: Chapter 08

Terms in this set (11)

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

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

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

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