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24 Cards in this Set
- Front
- Back
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Additions to a Major Fixed Asset |
Create a different asset |
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Expensed |
if the improvement maintains the asset at its current level |
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Capitalized |
if the improvements make the asset a better product |
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Activity Based |
based upon units, or use, or production |
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Straight-line method |
consistent calculation used throughout the depreciation process (conservative) |
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Decreasing methods |
provide for higher amount of depreciation at tht beginning and lower towards the end |
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Sum-of-Years-Digits |
in between |
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Double-Declining Method |
most aggressive |
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Passenger Vehicle |
<6000 elect to take 8,000 bonus depreciation in the first year |
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Truck or Van |
<14,000 elect to take 8,000 in the first year with a maximum of 3,160 for a total of 11,160 |
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SUV |
>6,000<14,000 elect section 179 up to 25,000 5-years MACRS |
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Tractor-Trailer |
>14,000 elect section 179 up to 500,000 3-years MACRS |
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Mid-Month Convention |
this is only for real property (residential or non residential estates) |
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Mid-Quarter Convention |
This is used for MACRS qualified property where 40% has been purchased in the 4th quarter |
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Half-Year Convention |
This is used for MACRS qualified property where the mid-quarter convention is not applicable |
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Tax Depreciation |
is calculated from a calender year perspective |
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Marketing Related Intangibles |
indefinite number of renewal periods of 10 years Trademarks do not amortize |
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Artistic Related Intangibles |
Copyright |
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Copyright |
federally granted rights for artists, painters, musicians etc can be amortized 70 years after the death of the artist |
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Technology Related Intangibles |
Patent |
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Patent |
Exclusive rights to use, manufacture and sell a product for a period of 20 years can be amortized for 20 years |
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Goodwill |
the amount of excess in a purchase of another company |
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Held to Maturity |
securities that the company has the positive intent to hold til maturity ex: Bonds |
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Trading Securities |
Securities that are bought and held primarily for sale in the very near future to generate short-term price differences |
