【正文】 al Depreciation Expense ? This method is patible with the matching principle because the higher depreciation in early years is matched with the higher benefits received in these years. DECLININGBALANCE 余額遞減法 doubledecliningbalance method雙倍余額遞減法 ? Unlike the other depreciation methods, salvage value is ignored in determining the amount to which the declining balance rate is applied. ? A mon application of the decliningbalance method is the doubledecliningbalance method雙倍余額遞減法 , in which the decliningbalance rate is double the straightline rate. ? If Barb’s Florists uses the doubledecliningbalance method, the depreciation is 40% (2 X the straightline rate of 20%). $13,000 x 40% = $5,200 Book Value at Beginning of 1st year Declining Balance Rate Depreciation Expense Book Value = 13000 – 5200 =7800 $7800 x 40% = $3120 Book Value at Beginning of 2nd year Declining Balance Rate Depreciation Expense Book Value = 7800 – 3120 =4680 $4680 x 40% = $1872 Book Value at Beginning of 3rd year Declining Balance Rate Depreciation Expense Book Value = 4680 – 1872 =2808 Year Book Value Depreciation Rate Depreciation Expense Book value (ending ) (1) (2) (3)=(1) (2) (1) – (3) 1 13000 40% 5200 7800 2 7800 40% 3120 4680 3 4680 40% 1872 2808 4 2808 40% 1123 1685 5 1685 40% 674 1011 ? If wear and tear or obsolescence indicate that annual depreciation is inadequate or excessive, a change in the periodic amount should be made. ? When a change is made, 1 there is no correction of previously recorded depreciation expense and 2 depreciation expense for current and future years is revised. ? To determine the new annual depreciation expense, the depreciable cost at the time of the revision is divided by the remaining useful life. REVISING PERIODIC DEPRECIATION 折舊的修正 Book value ,1/01/05 $ 5800 Less: salvage value 1000 Depreciable cost 4800 Remaining useful years 3 years Revised annual depreciation ($4,800 247。 Total Units of Activity = Depreciation Cost per Unit 2 Depreciation Cost per Unit X Units of Activity During the Year = Depreciation Expense UNITSOFACTIVITY 工作量法 ? In using this method, it is often difficult to make a reasonable estimate of total activity. ? When the productivity of an asset varies significantly from one period to another, this method results in the best matching of expenses with revenues. UNITSOFACTIVITY 工作量法 $12,000 247。 固定資產(chǎn)、自然資源、無形資產(chǎn) ： ； :； ： ? Plant assets are tangible resources that are used in the operations of a business and are not intended for sale to customers. ? Plant assets are subdivided into four classes: 1 Land 土地 2 Land improvements 土地附著物 3 Buildings 建筑物 4 Equipment 設(shè)備 PLANT ASSETS 固定資產(chǎn) ? Plant assets are recorded at cost in accordance with the cost principle. ? Cost consists of all expenditures necessary to acquire the asset and make it ready for its intended use. ? These costs include purchase price, freight costs, and installation costs. ? Expenditures that are not necessary should be recorded as expenses, losses, or other assets. DETERMINING THE COST OF PLANT ASSETS ? Cost is measured by the cash paid in a cash transaction or by the cash equivalent price when noncash assets are used in payment. ? The cash equivalent price is equal to the fair market value市場公允價值 of the asset given up or the fair market value of the asset received, whichever is more clearly determinable. MEASUREMENT OF PLANT ASSET COST固定資產(chǎn)成本的計量 ? The cost of Land includes: 1 ） cash purchase price 2 ） closing costs such as title and attorney’s fees 3 ） real estate brokers’ missions 4 ） accrued property taxes and other on the land assumed by the purchaser. ? All necessary costs incurred in making land ready for its intended use are debited to the Land account. LAND Sometimes purchased land has a building on it that must be removed to make the site suitable for construction of a new building. In this case, all demolition and removal costs less any proceeds from salvaged materials are chargeable to the Land account L a n dC a s h p r i c e o f p r o p e r ty $ 1 0 0 , 0 0 0N e t r e m o v a l c o s t o f w a r e h o u s e 6 , 0 0 0A tto r n e y ’s fe e 1 , 0 0 0R e a l e s ta te b r o k e r ’s c o m m is s io n 8 , 0 0 0C o s t o f l a n d $ 1 1 5 , 0 0 0The cost of land improvements includes all expenditures necessary to make the improvements ready for their intended use such as: 1 parking lots, paving 2 fencing, and 3 lighting. LAND IMPROVEMENTS ? The cost of buildings includes all necessary expenditures relating to the purchase or construction of a building. ? When a building is purchased, such costs include the purchase price, closin