Flashcards
chapter 17 key terms
Cards in this deck (18)
- 1Accelerate Cost Recovery System (ACRS)tax law enacted in 1981 for assets put in service (1981-1986)
- 2Accelerated Depreciationcomputes more depreciation expense in the early years of the asset's life than in the later years
- 3Accumulated Depreciationamount of depreciation that has accumulated on plant and equipment assets
- 4Asset Costamount company paid for the asset
- 5Book Valuecost - accumulated depreciation
- 6Declining-Balance Methodaccelerated method of depreciation. the depreciation each year is calculated by book value beginning each year times the rate
- 7Depreciationprocess of allocating the cost of an asset (less residual value) over the asset's estimated life
- 8Depreciation Expenseprocess involving asset cost, estimated useful life, and residual value (salvage or trade-in value)
- 9Depreciation Scheduletable showing amount of depreciation expense, accumulated depreciation and book value for each period of time for a plant asset
- 10Estimated Useful Lifehow long asset will be in use
- 11General Depreciation System (GDS)most common (MACRS) system to calculate depreciation
- 12Modified Accelerated Cost Recovery System (MACRS)part of Tax Reform Act of 1986 that revised depreciation schedules of ACRS. tax bill of 1989, 2010 updates MACRS
- 13Residual Valueestimated value of a plant asset after depreciation is taken (or end of useful life)
- 14Salvage Valuecost - accumulated depreciation
- 15Straight-Line Methodmethod of depreciation that spreads an equal amount of depreciation each year over the life of the assets
- 16Straight-Line Rateone / number of years of expected life
- 17Trade-In Valueestimated value of a plant asset after depreciation is taken (or end of useful life)
- 18Units-of-Production Methoddepreciation method that estimates amount of depreciation based on usage
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- Flashcards on chapter 17 key terms, created by ALEIA CRANDALL on 29/09/2023.
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- ALEIA CRANDALL
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