Property, plant, and equipment acquired for use in normal operations and not for resale, long-term in nature and usually subject to depreciation (land is an exception), that possess physical substance; also referred to as plant assets or property, plant and equipment. Such assets include land, building structures (offices, factories, warehouses), and equipment (machinery, furniture, tools). Historical cost is the usual basis for valuing property, plant, and equipment. Historical cost is measured by the cash or cash equivalent price of obtaining the asset and bringing it to the location and condition necessary for its intended use.
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