FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 10: Long-Term Assets: Fixed and Intangible

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 111

True/False

Review LaterAdd Note

Review Later

The double-declining-balance method is an accelerated depreciation method.

A) True
B) False

Correct Answer

verified

Show Answer

Question 112

Multiple Choice

Review LaterAdd Note

Review Later

Classify each of the following costs associated with long-lived assets as one of the following: -Costs to survey a new piece of land for a new business location

A) Buildings
B) Machinery and equipment
C) Land
D) Land improvements

E) B) and D)
F) B) and C)

Correct Answer

verified

Show Answer

Question 113

Multiple Choice

Review LaterAdd Note

When a company exchanges machinery and receives a trade-in allowance greater than the book value,this transaction would be recorded with which of the following entries (assuming the exchange was considered to have commercial substance) ?

A fixed asset with a cost of $41,000 and accumulated depreciation of $36,000 is traded for a similar asset priced at $50,000 (fair market value) in a transaction with commercial substance.Assuming a trade-in allowance of $4,000,at what cost will the new equipment be recorded in the books?

On December 31,Strike Company has decided to discard one of its batting cages.The equipment had an initial cost of $310,000 and has accumulated depreciation of $260,000.Depreciation has been recorded up to the end of the year.Which of the following will be included in the entry to record the disposal?

Comment on the validity of the following statements."As an asset loses its ability to provide services,cash needs to be set aside to replace it.Depreciation accomplishes this goal."

Match each account name to the financial statement section (a-i) in which it would appear. -Land Improvements

The normal balance of the accumulated depreciation account is a debit.

XYZ Co.incurred the following costs related to the office building used in operating its sports supply company:​ Classify each of the costs as a capital expenditure or a revenue expenditure.

A fixed asset's estimated value at the time it is to be retired from service is called

Match each account name to the financial statement section (a-i) in which it would appear. -Accumulated Depreciation-Buildings

Bacon Company acquired new machinery with a price of $15,200 by trading in similar old machinery and paying $12,700.The old machinery originally cost $9,000 and had accumulated depreciation of $5,000.In recording this transaction,Bacon Company should record

The depreciation method that does not use residual value in calculating the first year's depreciation expense is

A copy machine acquired on July 1 with a cost of $1,450 has an estimated useful life of four years.Assuming that it will have a residual value of $250,determine the depreciation for the first year by the double-declining-balance method.

On July 1,Sterns Co.acquired patent rights for $36,000.The patent has a useful life of six years and a legal life of 15 years.Journalize the adjusting entry on December 31 to recognize the amortization.Journal

The proper journal entry to purchase a computer costing $975 on account to be utilized within the business would be

Classify each of the following costs associated with long-lived assets as one of the following: -Cost of insurance during the construction of new office building

The method used to calculate the depletion of a natural resource is the straight-line method.

Classify each of the following costs associated with long-lived assets as one of the following: -Modifying a building purchased for new business location