Introduction of the term Capital Expenditure
Give a brief introduction of the term Capital Expenditure?
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Capital Expenditure is an amount incurred for obtaining the long term assets like building, land, equipments that are constantly employed for the reason of earning revenue. These are not preordained for sale. These costs are recorded in accounts specifically Plant, Property, Equipment. Advantages from this expenditure are spread over numerous accounting years.
On December 31, 20x1, the Juniper Company purchase a group of four assets for a total cost of $850,000. An independent appraiser assesses the fair value of each asset as follows: Asset Fair Value Land $100,000 Building 600,000 Equipment 250,000 Fixtures 150,000 Prepare the jour
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