Shaffer Company acquires land for $77,000 cash. Additional costs are as follows. \[\begin{array} { l r } \text { Removal of shed } & \$ 300 \\ \text { Filling and grading } & 1,500 \\ \text { Salvage value of lumber of shed } & 120 \\ \text { Broker commission } & 1,130 \\ \text { Paving of parking lot } & 10,000 \\ \text { Closing costs } & 560 \end{array}\] Shaffer will record the acquisition cost of the land as

A) $77,000. B) $78,690. C) $80,610. D) $80,370. A) $77,000. B) $78,690. C) $80,610. D) $80,370.

A company has the following assets: $\begin{array}{lr}\text { Buildings and Equipment, }\\ \text { less accumulated depreciation of } \$ 5,000,000 & \$ 25,000,000 \\ \text { Copyrights } & 2,400,000 \\ \text { Patents } & 10,000,000 \\ \text { Land } & 12,000,000 \end{array}$ The total amount reported under Property, Plant, and Equipment would be

A) $49,400,000. B) $37,000,000. C) $47,000,000. D) $39,400,000. A) $49,400,000. B) $37,000,000. C) $47,000,000. D) $39,400,000.

Ramirez Company acquires land for $240,000 cash. Additional costs are as follow. \[\begin{array} { l r } \text { Removal of shed } & \$ 2,000 \\ \text { Filling and grading } & 6,000 \\ \text { Salvage value of lumber of shed } & 1,280 \\ \text { Broker commission } & 4,520 \\ \text { Paving of parking lot } & 40,000 \\ \text { Closing costs } & 3,400 \end{array}\] Ramirez will record the acquisition cost of the land as

A) $254,640. B) $257,200. C) $255,920. D) $240,000. A) $254,640. B) $257,200. C) $255,920. D) $240,000.

Exam 8: Reporting and Analyzing Long-Lived Assets

A plant asset was purchased on January 1 for $55,000 with an estimated salvage value of $5,000 at the end of its useful life. The current year's depreciation expense is $5,000 calculated on the straight-line basis and the balance of the Accumulated Depreciation account at the end of the year is $25,000. The remaining useful life of the plant asset is

(Multiple Choice)

4.7/5

(41)

Question 61

Equipment with a cost of $640,000 has an estimated salvage value of $60,000 and an estimated life of 4 years or 12,000 hours. It is to be depreciated by the straight-line method. What is the amount of depreciation for the first full year, during which the equipment was used 3,000 hours?

(Multiple Choice)

4.8/5

(28)

Question 62

Shaffer Company acquires land for $77,000 cash. Additional costs are as follows. Removal of shed \ 300 Filling and grading 1,500 Salvage value of lumber of shed 120 Broker commission 1,130 Paving of parking lot 10,000 Closing costs 560 Shaffer will record the acquisition cost of the land as

(Multiple Choice)

4.9/5

(36)

Question 63

The cost of successfully defending a patent in an infringement suit should be

(Multiple Choice)

4.9/5

(43)

Question 64

A loss on disposal of a plant asset as a result of a sale or a retirement is calculated in the same way as a gain on disposal.

(True/False)

4.9/5

(37)

Question 65

A permanent decline in the market value of an asset is referred to as an impairment.

(True/False)

4.8/5

(40)

Question 66

If an acquired franchise or license is for an indefinite time period, then the cost of the asset should not be amortized.

(True/False)

4.8/5

(29)

Question 67

On January 1, a machine with a useful life of four years and a salvage value of $16,000 was purchased for $80,000. What is the depreciation expense for year 2 under straight-line depreciation?

(Multiple Choice)

4.8/5

(41)

Question 68

A company has the following assets: Buildings and Equipment, less accumulated depreciation of \ 5,000,000 \ 25,000,000 Copyrights 2,400,000 Patents 10,000,000 Land 12,000,000 The total amount reported under Property, Plant, and Equipment would be

(Multiple Choice)

4.7/5

(41)

Question 69

Grant Company has decided to change the estimate of the useful life of an asset that has been in service for 2 years. Which of the following statements describes the proper way to revise a useful life estimate?

(Multiple Choice)

4.9/5

(31)

Question 70

A plant asset with a cost of $600,000 and accumulated depreciation of $570,000 is sold for $70,000. What is the amount of the gain or loss on disposal of the plant asset?

(Multiple Choice)

4.8/5

(37)

Question 71

On November 1, 2016, Love Company places a new asset into service. The cost of the asset is $90,000 with an estimated 5-year life and $10,000 salvage value at the end of its useful life. What is the depreciation expense for 2017 if Love Company uses the straight-line method of depreciation?

(Multiple Choice)

4.8/5

(28)

Question 72

Ramirez Company acquires land for $240,000 cash. Additional costs are as follow. Removal of shed \ 2,000 Filling and grading 6,000 Salvage value of lumber of shed 1,280 Broker commission 4,520 Paving of parking lot 40,000 Closing costs 3,400 Ramirez will record the acquisition cost of the land as

(Multiple Choice)

4.8/5

(41)

Question 73

Capital expenditures are expenditures that increase the company's investment in productive facilities.

(True/False)

4.9/5

(41)

Question 74

Machinery was purchased for $340,000 on January 1, 2017. Freight charges amounted to $14,000 and there was a cost of $40,000 for building a foundation and installing the machinery. It is estimated that the machinery will have a $60,000 salvage value at the end of its 5-year useful life. What is the amount of accumulated depreciation at December 31, 2018, if the straight-line method of depreciation is used?

(Multiple Choice)

4.7/5

(36)

Question 75

Nicholson Company purchased equipment on January 1, 2015, for €28,000 with an estimated residual value of €7,000 and estimated useful life of 8 years. On January 1, 2017, Nicholson decided the equipment will last 12 years from the date of purchase. The residual value is still estimated at €7,000. Using the straight-line method the new annual depreciation will be:

(Multiple Choice)

4.9/5

(35)

Question 76

Research and development costs that result in a successful product that is patentable are charged to the Patent account.

(True/False)

4.9/5

(43)

Question 77

A truck costing $75,000 and on which $65,000 of accumulated depreciation has been re-corded was discarded as having no value. The entry to record this event would include a

(Multiple Choice)

4.7/5

(32)

Question 78

The return on assets ratio indicates how efficiently a company uses its assets.

(True/False)

5.0/5

(37)

Question 79

Land improvements are generally charged to the Land account.

(True/False)

4.7/5

(46)

Question 80

Showing 61 - 80 of 227

Equipment with a cost of $640,000 has an estimated salvage value of $60,000 and an estimated life of 4 years or 12,000 hours. It is to be depreciated by the straight-line method. What is the amount of depreciation for the first full year, during which the equipment was used 3,000 hours?

Shaffer Company acquires land for $77,000 cash. Additional costs are as follows. Removal of shed \ 300 Filling and grading 1,500 Salvage value of lumber of shed 120 Broker commission 1,130 Paving of parking lot 10,000 Closing costs 560 Shaffer will record the acquisition cost of the land as

The cost of successfully defending a patent in an infringement suit should be

A loss on disposal of a plant asset as a result of a sale or a retirement is calculated in the same way as a gain on disposal.

A permanent decline in the market value of an asset is referred to as an impairment.

If an acquired franchise or license is for an indefinite time period, then the cost of the asset should not be amortized.

On January 1, a machine with a useful life of four years and a salvage value of $16,000 was purchased for $80,000. What is the depreciation expense for year 2 under straight-line depreciation?

A company has the following assets: Buildings and Equipment, less accumulated depreciation of \ 5,000,000 \ 25,000,000 Copyrights 2,400,000 Patents 10,000,000 Land 12,000,000 The total amount reported under Property, Plant, and Equipment would be

Grant Company has decided to change the estimate of the useful life of an asset that has been in service for 2 years. Which of the following statements describes the proper way to revise a useful life estimate?

A plant asset with a cost of $600,000 and accumulated depreciation of $570,000 is sold for $70,000. What is the amount of the gain or loss on disposal of the plant asset?

On November 1, 2016, Love Company places a new asset into service. The cost of the asset is $90,000 with an estimated 5-year life and $10,000 salvage value at the end of its useful life. What is the depreciation expense for 2017 if Love Company uses the straight-line method of depreciation?

Ramirez Company acquires land for $240,000 cash. Additional costs are as follow. Removal of shed \ 2,000 Filling and grading 6,000 Salvage value of lumber of shed 1,280 Broker commission 4,520 Paving of parking lot 40,000 Closing costs 3,400 Ramirez will record the acquisition cost of the land as

Capital expenditures are expenditures that increase the company's investment in productive facilities.

Research and development costs that result in a successful product that is patentable are charged to the Patent account.

A truck costing $75,000 and on which $65,000 of accumulated depreciation has been re-corded was discarded as having no value. The entry to record this event would include a

The return on assets ratio indicates how efficiently a company uses its assets.

Land improvements are generally charged to the Land account.

Introduction to Financial Statements

A Further Look at Financial Statements

The Accounting Information System

Merchandising Operations and the Multiple-Step Income Statement

Reporting and Analyzing Inventory

Fraud, Internal Control, and Cash

Reporting and Analyzing Receivables

Reporting and Analyzing Liabilities

Reporting and Analyzing Stockholders Equity

Statement of Cash Flows

Financial Analysis: The Big Picture

Managerial Accounting

Job Order Costing

Process Costing

Activity-Based Costing

Cost-Volume-Profit

Cost-Volume-Profit Analysis: Additional Issues

Incremental Analysis

Budgetary Planning

Budgetary Control and Responsibility Accounting

Standard Costs and Balanced Scorecard

Planning for Capital Investments

Filters