COMPLETE THE FOLLOWING WORKSHEET OBJECTIVE 1 TOPIC: Accounting for Fixed Assets > General rule: The cost of acquiring a fixed asset includes all costs necessary to get the asset to its place of use and ready for use. > NOTE: Exhibit 2 in the text lists examples of costs to be included in the total cost capitalized when recording a fixed asset. 1. Define the following terms: Fixed Assets (or Plant Assets): Land Improvements: OBJECTIVE 2 TOPIC: Computing depreciation using the following methods: straight-line, units- of-activity, and double-declining-balance. NOTE: Depreciation is an allocation of a fixed asset's cost to expense over the asset's useful life and does not provide cash to replace the asset. Land is not depreciated; Land Imprimts are. NOTE: The journal entry to record Depreciation is: Dr Depreciation Expense Cr. Accum. Depreciation XX 2. What causes depreciation? 3. What three factors determine depreciation expense? 1. 2. 3