Lump Sum Purchases - ACC 201, University of Kentucky

in Topic 8 (Video 2 of 8)

6 minutes

When you buy a group of assets all at once, you need to split up the purchase price in a reasonable way. I'll show you what is reasonable.

This Video Mentioned Some Formulas

Purchase Price of Asset = Purchase Price of Group * (FMV of Asset / FMV of Whole Group)

Lump Sum Purchases are also called Basket Purchases, or Group Purchases

1	Acquisition Cost of Assets	13:23
2	Lump Sum Purchases You are here.	6:01
3	What is Depreciation?	11:23
4	Straight Line Depreciation	4:33
5	Double Declining Balance	13:58
6	Units of Production	3:43
7	Partial Year Depreciation	5:50
8	Capital vs. Revenue Expenditures	10:42

	Click Here to View All Topic 8 Problems at Once	View
1	The Effect of Amortization	Easy
2	The Effect of Capital vs Revenue Expenditures	Easy
3	Calculating Depreciation using DDB	Moderate
4	Change in Depreciation	Moderate
5	Failure to Record Depreciation	Moderate