Accounting Plant Assets Excel01 - Video

Determining the Cost of Plant Assets
3 Depreciation Methods

1. Straight-Line
2. Units-of-Activity
3. Declining-Balance

Cost: all expenditures necessary to acquire the asset
and make it ready for intended use

Useful (productive, service) Life: estimate of the expected life based
on need for repair, service life, and vulnerability to obsolescence

Salvage (residual) Value: estimate of the asset's value at the end of its useful life

Depreciation Expense is reported on the Income Statement.
Accumulated Depreciation is reported on the Balance Sheet
as a deduction from plant assets.