Friday, March 27, 2020

Plant Assets Aquisition free essay sample

The term property, plant and equipment, also called fixed assets, includes all tangible assets with a service life of more than one year that are used in the operation of the business and are not acquired for the purpose of resale. This includes equipment, furniture, tools, machinery, buildings and land. These assets are expected to provide services to the company for a number of years. Except for land, plant assets decline in value over their useful lives. Plant assets are usually subject to depreciation. Depreciation methods are not covered in detail in this paper. The book value of plant assets is the cost of the asset less accumulated depreciation. This amount is not an indication of the market value of the asset, which may be much higher than the book value in most cases. The difference between the market and book value of assets is an unrecorded asset. Also I’m going to include in this paper intangible assets that in some cases have more material significance than plant assets in the financial statements. We will write a custom essay sample on Plant Assets Aquisition or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page 3) Cost Subsequent to Acquisition The cost principle requires that companies record plant assets at historical cost. APB Opinion No. 6 states that property, plant and equipment should not be written up to reflect appraisal, market or current values which are above cost. Cost consists of all expenditures necessary to acquire an asset and make it ready for its intended use. Examples are: purchase price, fright and installation cost are part of factory machinery. Expenditures to acquire new plant assets or to extend the life or enhance the value of existing plant assets are capital expenditures. For the cost to be capitalized, one of three conditions must be present: (a) the useful life of the asset must be increased, (b) the quantity of service produce from the asset must be increased, or (c) the quality of the units produce must be enhanced. Additions result in the creation of new assets, they should be capitalized. Improvements and replacements are substitutions of one asset for another. Improvements substitute a better asset for one currently used, whereas a replacement substitute a similar asset. The mayor problem in accounting for improvements and replacements concerns differentiating these expenditures from normal repairs. It should be capitalized only if an improvement or replacement increases the future service potential of the asset. Capitalization may be accomplished by: (a) substituting the cost of the new asset for the cost of the asset replaced, (b) capitalizing the new cost without eliminating the cost of the asset replaced, or (c) debiting the expenditure to accumulated depreciation. Reinstallation cost are generally carried forward as a separate asset and amortized against future income. Expenditures to repair or maintain plant assets that do not extend the life or enhance the value of the assets are known as operating expenditures. They usually are fairly small amounts that occur frequently throughout the service life. Examples are: motor tune-ups and oil changes and painting of buildings. Classification of Plant Assets: Land: companies often use as a building site for a manufacturing plant or office site. The cost of land includes (1) the purchase price, (2) closing cost such as title and attorney’s fees, (3) real estate broker’s commission, and (4) accrued property taxes and other liens on the land assumed by the purchaser. All necessary cost uncured in making land ready for its intended use increase the land account. When a company acquires a vacant lot, its cost includes expenditures for cleaning, draining, filling, and grading. If the land has a building on it that must be removed to make the site ready for construction of a new office building, the company includes all demolition and removal costs, less any proceeds from salvage materials, in the Land account. Buildings: when a building is purchase, such cost includes the purchase price, closing costs (insurance, attorney’s fees, etc. and real estate broker’s commission. Cost to make the building ready for its intended use consists of expenditures for remodeling rooms and offices, replacing roofs, etc. When a new building is constructed, its cost consists of the contract price plus payments made by the owner for architect’s fees, building permits and excavation costs. Equipment: includes assets used in operations such as office furniture, machinery, trucks, etc. The cost of the equipment consists of the purchase price, sales tax, freight charges and insurance paid by the purchaser. Two criteria apply in the determining the cost of equipment: (1) the frequency of the cost-one time or recurring, and (2) the benefit period-the life of the asset or one year. Interest Cost: capitalization of interest cost incurred in connection with financing the construction of property, plant, and equipment is addressed in FASB Statement No. 34, â€Å"Capitalization of Interest Cost â€Å". The profession generally follows the rule of capitalizing only the actual interest cost incurred during construction.

Friday, March 6, 2020

Ford Mustang

Ford Mustang The beginningThe Mustang started it's life when the baby boomers were just starting to drive. A brief scan of the auto industry leaves little choices. Most new cars were those of a kids parents. These cars were usually big and bulky. The new performance cars were the Corvette and the Thunderbird, but these cars were to expensive for a teenager to afford. Other sportier cars were foreign. Like the MG or the Austin Martin, but these cars offered little performance. There were also the hot rodders. These people took cars from the '30's and '40's most of which were the Ford Flat head. These engines started as a 60 or 80 horsepower. When these kid's finished with them they usually looked like a junker on the outside, but if one opened the hood they would find a piece of art work.Lee Iacocca realized this problem and went to work on a new type of car.68 - 1970 Ford Boss 302 (302cid) Dave Putnam Glenw...He wanted it to have a long hood short rear deck like the Lincoln Continental. It had to have a sporty look and be affordable. In 1962 a number of clay models were made. Iacocca wanted to display the car at the 1964 World's Fair, and time was running out. A design contest was held. Full size clay models had to be made in two weeks a process that usually took months.No one was eager to gamble on a new Idea. Committee after committee turned Iacocca down. Iacocca convinced the only man hePage 3had to, Henry Ford II.Now there was another problem a name. Many people thought that it should be Cougar the name of the design winners. Others thought that it should be Torrino, T-5, or the Thunderbird 2, Iacocca wanted it to be Mustang after the WWII...

Profile and Biography of Socrates

Profile and Biography of Socrates The Greek philosopher Socrates was born c. 470/469 B.C., in Athens, and died in 399 B.C. To put this in the context of the other great men of his time, the sculptor Pheidias died c. 430; Sophocles and Euripides died c. 406; Pericles died in 429; Thucydides died c. 399; and the architect Ictinus completed the Parthenon in c. 438. Athens was producing the extraordinary art and monuments for which she would be remembered. Beauty, including personal, was vital. It was linked with being good. However, Socrates was ugly, according to all accounts, a fact that made him a good target for Aristophanes in his comedies. Who Was Socrates? Socrates was a great Greek philosopher, possibly the wisest sage of all time. He is famous for contributing to philosophy: Pithy sayingsThe Socratic method of discussion or dialogueSocratic irony A discussion of Greek democracy often focuses on a sadder aspect of his life: his state-mandated execution. Family Although we have many details about his death, we know little about the life of Socrates. Plato provides us the names of some of his family members: Socrates father was Sophroniscus (thought to have been a stonemason), his mother was Phaenarete, and his wife, Xanthippe (a proverbial shrew). Socrates had 3 sons, Lamprocles, Sophroniscus, and Menexenus. The oldest, Lamprocles, was about 15 at the time his father died. Death The Council of 500 [see Athenian Officials in the Time of Pericles] condemned Socrates to death for impiety for not believing in the gods of the city and for introducing new gods. He was offered an alternative to death, paying a fine, but refused it. Socrates fulfilled his sentence by drinking a cup of poison hemlock in front of friends. Socrates as Citizen of Athens Socrates is remembered chiefly as a philosopher and the teacher of Plato, but he was also a citizen of Athens, and served the military as a hoplite during the Peloponnesian War, at Potidaea (432–429), where he saved Alcibiades life in a skirmish, Delium (424), where he remained calm while most around him were in a panic, and Amphipolis (422). Socrates also participated in the Athenian democratic political organ, the Council of the 500. As a Sophist The 5th century B.C. sophists, a name based on the Greek word for wisdom, are familiar to us mostly from the writings of Aristophanes, Plato, and Xenophon, who opposed them. Sophists taught valuable skills, especially rhetoric, for a price. Although Plato shows Socrates opposing the sophists, and not charging for his instruction, Aristophanes, in his comedy Clouds, portrays Socrates as a greedy master of the sophists craft. Although Plato is considered the most reliable source on Socrates and he says Socrates was not a sophist, opinions differ on whether Socrates was essentially different from the (other) sophists. Contemporary Sources Socrates is not known to have written anything. He is best known for the dialogues of Plato, but before Plato painted his memorable portrait in his dialogues, Socrates was an object of ridicule, described as a sophist, by Aristophanes. In addition to writing about his life and teaching, Plato and Xenophon wrote about Socrates defense at his trial, in separate works both called Apology. The Socratic Method Socrates is known for the Socratic method (elenchus), Socratic irony, and the pursuit of knowledge. Socrates is famous for saying that he knows nothing and that the unexamined life is not worth living. The Socratic method involves asking a series of questions until a contradiction emerges invalidating the initial assumption. Socratic irony is the position that the inquisitor takes that he knows nothing while leading the questioning.