Accounting Mod5

costs incurred that increase productivity, etc of asset.

Value is capitalized to asset

net sales / average total assets

amortization method required by CRA

constant rate used

loss to not book value of asset htat is not recoverable

expenditures that only benefit the current period

expensed

net income / average total assets

divides cost of asset by estimated useful life

typically residual is taken off the netbook value

less amortization every year.

No residual value taken off netbook value. You "fix" the final year to reach the residual value you need.