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Fair Value Accumulated Depreciation Capital Expenditures Land What vacant land is acquired, expenditures for clearing, draining, filling, and grading should be charged to the account. The cost of paving, fencing, and lighting a new company parking lot is charged to a account. The book value of a plant asset is obtained by subtracting from the of the plant asset The method of computing depreciation expense results in an equal amount of periodic depreciation throughout the service life of the plant asset. The declining-balance method of computing depreciation is known as an depreciation method. The declining balance method of computing depreciation expense involves multiplying a book value by percentage Cost Accelerated Straight-line Effective interest Land Improvement Declining Indenture Material Ordinary repairs which maintain operating efficiency and expected productive life are called Additions and improvements are costs incurred to increase the operating efficiency, productive capacity, or expected useful life and are referred to as Debenture Constant In recording the purchase of a business, goodwill should be recorded for the excess of of the net assets acquired. over the GAAP Market Cost The terms of a bond issue are set forth in a formal legal document called a bond are issued against the general credit of the borrower are called (par), it indicates that the interest rate must be equal to the Unsecured bonds that bonds. If bonds are issued at face value interest rate. A Stated Straight-line In recording the purchase of a business, goodwill should be recorded for the excess of of the net assets acquired. Constant over the GAAP Market Cost The terms of a bond issue are set forth in a formal legal document called a bond Unsecured bonds that are issued against the general credit of the borrower are called bonds. If bonds are issued at face value (par), it indicates that the interest rate must be equal to the interest rate. A method of amortizing bond discount or premium that allocates an equal amount each period is the method. When there is a difference between the straight-line and effective-interest methods of amortization, the method is required under Stated Straight-line Revenue Expenditures

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