Property plant and equipment, also known as plant assets, fixed assets, or depreciable assets is what we will cover. We will discuss what property plant and equipment is and how to record property plant and equipment. Multiple depreciation methods will be covered including the straight-line depreciation method, the double declining depreciation method, and the units of production depreciation method. We will discuss the pros and cons of each depreciation method and outline a format for structuring any deprecation problem. While calculation depreciation expense we will also calculate accumulated depreciation and book value. It’s important to remember the context we are in when calculating depreciation, the reason for the work. Test questions often do not ask for the calculation of depreciation but for accumulated depreciation or the book value because these components take a little more time and understanding and to work out. The straight-line method of depreciation is the easiest method to calculate and the method all other methods are derived from. The double declining depreciation method in an accelerated method, designed to depreciate more in early years a less in later years. The units of production depreciation method uses units produced rather than time as the driver of cost allocation. We will discuss the difference between capital expenditures and revenue expenditures, and we will cover the disposal process of property plant and equipment. When fixed assets are disposed of they may or may not be fully depreciated and we may or may not receive cash at the point of disposal. We will discuss the journal entries for property plant and equipment starting with the most straightforward transaction and building from there. We will also cover changes in accounting estimates for the calculation of depreciation and how best to account for them. Definitions and key terms related to property plant and equipment will be covered as well as a comprehensive problem.