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discussion question you will explain how to account for long-lived assets. What are the various categories...

discussion question you will explain how to account for long-lived assets.

What are the various categories of long-lived assets? What should be included in the cost of a long-lived asset for accounting purposes? How do accountants decide when these costs should be expensed rather than capitalized?

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Answer #1

Long lived aasets are the assets which expected to be retain in business for more than one year.

Long live assets are recorded in its cost and depreciable during the usefullife of assets in a certain manner

There are two sub categories for long live asset

1. Tangible - which includes physical ones like furniture, building etc

2. Intangible- like patent , goodwill etc

Long live assets are recorded in value which make its ready to use. Includes Purchase cost, Installation cost etc

If the benefit from assets is cover more than a year , it should be capitalized

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