In the United States, accounting for long-lived assets is based on application of the historical cost model. The historical cost model maintains the retention of costs of asset acquisition as the basis for the asset over its estimated useful life.
Complete a writing assignment with a minimum of 1000 words covering the following questions.
What is included in the cost basis of a long-lived asset? Explain for at least two types of such assets.
What sources are reliably used to estimate an asset's useful life?
How is the appropriate depreciation method determined?
Has the concept of asset impairment changed accounting for long-lived assets under the historical cost model? If so, how?