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Referred to as property, plant, and equipment (PP&E); plant and equipment; and _______ ________.

___________ is the process of allocating to expense the cost of a plant asset over its useful (service) life in a rational and systematic manner to those periods expected to benefit from the use of the asset. Depreciation is an _________ .

_______ _______ include land, land improvements, buildings, and equipment (machinery, furniture, tools) are resources that

_______ ___ _________ -

• Expense varies based on units of activity.
• Depreciable cost is cost less salvage value.
• Companies estimate total units of activity to calculate depreciation cost per unit.

__________ ___________ (a.k.a. DDB)

• Declining annual depreciation expense per year.
• Declining-balance rate is double the straight-line rate.
• Rate applied to book value (cost less accumulated depreciation)

__________ - ________ (the most common method)

• Expense is same amount for each year.
• Depreciable cost is the assets cost less its salvage value.
• Straight-line method predominates in practice.