71) Except for goodwill, the accounting for intangibles is similar to accounting for tangible long-lived assets.
72) The cost of land does not include the cost of paving to construct a parking lot.
73) Of the tangible long-lived assets, buildings are unique because they are not amortized.
74) Land improvements are subject to depreciation.
75) Costs of land improvements are not included in the Land account.
76) Improvements to land are considered part of the cost of land since they are tied directly to the use of the land itself.
77) Immediate expenses are those that maintain the existing condition of an asset or restore an asset to good working order.
78) The Accumulated Depreciation account represents a source of cash to be used to replace the asset in the future.
79) In order to calculate depreciation, the cost of the asset, the estimated useful life, and the estimated residual value of the asset must be known.
80) When using the double-declining-balance depreciation method, the asset's residual value is used in computing the first year of depreciation.