Exam 9: Long-Lived Tangible and Intangible Assets

If the double-declining balance method were used to depreciate a building that has a 10-year useful life and a residual value equal to 10% of the building's original cost,what depreciation rate would be used?

Which of the following statements is true?

A company buys a piece of equipment for $48,000.The equipment has a useful life of ten years.Using the double-declining-balance method,the company's depreciation expense in the first year would be:

The allocation method used for natural resources is similar to which of the following depreciation methods?

A loss on disposal of an asset would be reported:

When assets are purchased as a group,the total cost must be divided up and allocated to each asset in proportion to the market value of the assets as a whole.

How does an asset impairment loss impact a company's financial statements?

A company bought a piece of equipment for $40,000,expecting to use it for eight years.The company then plans to sell it for $3,500.The company has already recorded depreciation of $35,995.Using the double-declining-balance method,the company's annual depreciation expense for the upcoming year would be:

Which of the following is not the same as book value?

Use the information above to answer the following question.What is the depreciation expense for the first year using the double-declining-balance method?

When originally purchased,a vehicle had an estimated useful life of 8 years.The vehicle cost $25,000 and its estimated residual value is $3,000.After 3 years of straight-line depreciation,the asset's total estimated useful life was revised from 8 years to 5 years and there was no change in the estimated residual value.The depreciation expense in year 4 is

EBITDA is equal to which of the following?

Goodwill

E.Flynn Company purchased a building for $400,000.The current book value of the building is $200,000 and the fair value is $180,000.The sum of future cash flows from the building is $160,000.According to GAAP,the amount of impairment loss that should be recognized is

A company sells a long-lived asset that originally cost $200,000 for $50,000 on December 31,2014.The accumulated depreciation account had a balance of $110,000 after the current year's depreciation of $45,000 had been recorded.The company should recognize a:

One difference between the double-declining-balance method and the straight-line method is that the double-declining-balance method:

Ordinary repairs and maintenance:

On January 1,2014,Horton Inc.sells a machine for $23,000.The machine was originally purchased on January 1,2012 for $40,000.The machine was estimated to have a useful life of 5 years and a salvage value of $0.Horton uses straight-line depreciation.In recording this transaction:

A machine is purchased on January 1,2014,for $90,000.It is expected to have a useful life of five years and a residual value of $5,000.The company closes its books on December 31.Under the double-declining balance method,what is the total amount of depreciation to be expensed during the 2015 fiscal year (year 2 of 5)?

On September 1,a company purchased a vehicle for $23,000 with a residual value of $3,000.The estimated useful life is 5 years and the company uses the straight-line method.What is the depreciation expense for the year ended December 31?