Accounting for Plant Assets and Depreciation
Why is keeping track of plant assets and their depreciaton so important to a business?
- You will be able to define plant assets and depreciation and explain their purpose in a business.
Who charges property taxes and what are they used for?
- You will be able to explain what is meant by "real" property, "personal" property and assessed value.
- You will be able to calculate property taxes given the assessed value and tax rate.
What are the two methods are used to calculate depreciation and why is one used over the other?
- You will be able to explain and calculate straight-line method of depreciation.
- You will be able to explain and calculate double declining-balance method of depreciation.
What happens when an asset is sold?
- You will be able to calculate the book value of and asset and analyze if it was sold for a loss or a gain.
You will be able to journalize all purchases and sales of plant assets in this chapter and record depreciation for each.
You will be able to complete plant asset records to keep track of the purchase, sale and depreciation of each plant asset.
You will be able to journalize all adjusting depreciation expenses.