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current assets
Cash and other assets expected to be exchanged for cash or consumed within a year.
plant asset record
An accounting form on which a business records information about each plant asset.
real property
Land and anything attached to it; also called real estate.
personal property
All property not classified as real property.
assessed value
The value of an asset determined by tax authorities for the purpose of calculating taxes.
millage rate
The tax rate used to calculate property taxes.
salvage value
The amount that will be received for an asset at the time of its disposal.
straight-line method of depreciation
Recording an equal amount of depreciation expense for a plant asset in each year of its useful life.
book value of a plant asset
The original cost of a plant asset minus accumulated depreciation.
half-year convention
A method that recognizes one half of a year's depreciation in the year of acquisition.
modified half-year convention
A method that recognizes a full year's depreciation if the asset is acquired in the first half of the year.
declining-balance method of depreciation
A type of accelerated depreciation that multiplies the book value of an asset by a constant depreciation rate to determine annual depreciation.
units-of-production method of depreciation
Calculating the estimated annual depreciation expense based on the amount of production expected from a plant asset.
Modified Accelerated Cost Recovery System (MACRS)
A depreciation method required by the Internal Revenue Service to be used for income tax calculation purposes for most plant assets.
Depletion
The decrease in the value of a plant asset because of the removal of a natural resource.
