Question 1

Match each account name to the financial statement section (a-i) in which it would appear.
-Gain on Sale of Equipment

Accepted Answer

A) Current assets 
B) Fixed assets 
C) Intangible assets 
D) Current liability 
E) Long-term liability
F)Owner's equity
G)Revenues
H)Operating expenses
I)Other revenue and expense 
A) Current assets 
B) Fixed assets 
C) Intangible assets 
D) Current liability 
E) Long-term liability
F)Owner's equity
G)Revenues
H)Operating expenses
I)Other revenue and expense

Question 2

Computer equipment was acquired at the beginning of the year at a cost of $65,000 that has an estimated residual value of $3,800 and an estimated useful life of eight years. Determine the 
(a) depreciable cost, 
(b) straight-line rate, and 
(c) annual straight-line depreciation.

Accepted Answer

(a)$61,200 
(Initial Cost - Es

Question 3

Carter Co. acquired drilling rights for $18,550,000. The oil deposit is estimated at 74,200,000 gallons. During the current year, 6,000,000 gallons were drilled. Journalize the adjusting entry at December 31 to recognize the depletion expense.Journal $$\begin{array} { | c | c | c | c | c | } 
\hline \text { Date } & \text { Description } & \begin{array} { c } 
\text { Post. } \
\text { Ref. }
\end{array} & \text { Debit } & \text { Credit } \
\hline & & & & \
\hline & & & & \
\hline & & & & \
\hline
\end{array}$$

Accepted Answer

? @#IMG-DLM& *Depletion Rate = Cost/Estimated Size

Question 4

Which of the following should be included in the acquisition cost of a piece of equipment?

Accepted Answer

A)  transportation costs 
B)  installation costs 
C)  testing costs prior to placing the equipment into production 
D)  All of these choices 
A)  transportation costs 
B)  installation costs 
C)  testing costs prior to placing the equipment into production 
D)  All of these choices

Question 5

A capital expenditure results in a debit to a (n)

Accepted Answer

A)  expense account 
B)  capital account 
C)  liability account 
D)  asset account 
A)  expense account 
B)  capital account 
C)  liability account 
D)  asset account

Question 6

Classify each of the following costs associated with long-lived assets as one of the following:
-Cost of grading and leveling land to be used for a new business site

Accepted Answer

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

Question 7

It is not necessary for a company to use the same depreciation method for all of its fixed assets.

Accepted Answer

A) True 
 B)False

Question 8

The higher the fixed asset turnover, the

Accepted Answer

A)  less efficiently a company is using its fixed assets in generating sales 
B)  more efficiently a company is using its fixed assets in generating sales 
C)  more efficiently a company is using its current assets in generating sales 
D)  more efficiently a company is using its intangible assets in generating sales 
A)  less efficiently a company is using its fixed assets in generating sales 
B)  more efficiently a company is using its fixed assets in generating sales 
C)  more efficiently a company is using its current assets in generating sales 
D)  more efficiently a company is using its intangible assets in generating sales

Question 9

Match the intangible assets described with their proper classification (a-d).
​
-Reputation of a company

Accepted Answer

A) Patent 
B) Copyright 
C) Trademark 
D) Goodwill 
A) Patent 
B) Copyright 
C) Trademark 
D) Goodwill

Question 10

Chasteen Company acquired mineral rights for $9,100,000. The mineral deposit is estimated at 65,000,000 tons. During the current year, 18,375,000 tons were mined and sold.?

Required
(a)Determine the amount of depletion expense for the current year.
(b)Journalize the adjusting entry to recognize the depletion expense.

Accepted Answer

(a)$9,100,000/65,000,000 tons

Question 11

For each of the following fixed assets, determine the depreciation expense for Year 3:Disposal date is N/A if asset is still in use.Method: SL = straight-line; DDB = double-declining-balanceAssume the estimated life is five years for each asset.

Accepted Answer

The answer of For each of the following fixed assets,...

Question 12

Equipment with a cost of $160,000, an estimated residual value of $40,000, and an estimated life of 15 years was depreciated by the straight-line method for four years. Due to obsolescence, it was determined that the remaining useful life should be shortened by three years and the residual value changed to zero. The depreciation expense for the current and future years is

Accepted Answer

A)  $11,636 
B)  $16,000 
C)  $11,000 
D)  $8,000 
A)  $11,636 
B)  $16,000 
C)  $11,000 
D)  $8,000

Question 13

On December 31, Strike Company sold one of its batting cages for $50,000. The equipment had an original cost of $310,000 and has accumulated depreciation of $260,000. Depreciation has been recorded up to the end of the year. What is the amount of the gain or loss on this transaction?

Accepted Answer

A)  gain of $50,000 
B)  loss of $50,000 
C)  no gain or loss 
D)  cannot be determined 
A)  gain of $50,000 
B)  loss of $50,000 
C)  no gain or loss 
D)  cannot be determined

Question 14

The natural resources of some companies include

Accepted Answer

A)  timber, metal ores, and minerals 
B)  timber, equipment, and patents 
C)  minerals, trademarks, and land 
D)  metal ores, copyrights, and supplies 
A)  timber, metal ores, and minerals 
B)  timber, equipment, and patents 
C)  minerals, trademarks, and land 
D)  metal ores, copyrights, and supplies

Question 15

Match the intangible assets described with their proper classification (a-d).
​
-Rights to sell a book and make a profit

Accepted Answer

A) Patent 
B) Copyright 
C) Trademark 
D) Goodwill 
A) Patent 
B) Copyright 
C) Trademark 
D) Goodwill

Question 16

On December 31, Strike Company traded in one of its batting cages for another one that has a cost of $500,000. Strike receives a trade-in allowance of $11,000. The old equipment had an initial cost of $215,000 and has accumulated depreciation of $185,000. Depreciation has been recorded up to the end of the year. The difference will be paid in cash. What is the amount of the gain or loss on this transaction?

Accepted Answer

A)  loss of $11,000 
B)  gain of $11,000 
C)  loss of $19,000 
D)  No loss or gain will be recorded. 
A)  loss of $11,000 
B)  gain of $11,000 
C)  loss of $19,000 
D)  No loss or gain will be recorded.

Question 17

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 $$\begin{array} { | c | c | c | c | c | } 
\hline \text { Date } & \text { Description } & \begin{array} { c } 
\text { Post. } \
\text { Ref. }
\end{array} & \text { Debit } & \text { Credit } \
\hline & & & & \
\hline & & & & \
\hline & & & & \
\hline
\end{array}$$

Accepted Answer

JournalAnnual Patent Amortizat

Question 18

Equipment with a cost of $220,000 has an estimated residual value of $30,000 and an estimated life of 10 years or 19,000 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 2,100 hours?

Accepted Answer

A)  $19,000 
B)  $21,000 
C)  $22,000 
D)  $30,000 
A)  $19,000 
B)  $21,000 
C)  $22,000 
D)  $30,000

Question 19

A machine costing $185,000 with a five-year life and $20,000 residual value was purchased January 2. Compute depreciation for each of the five years, using the double-declining-balance method.

Accepted Answer

The answer of A machine costing $185,000 with a five-year...

Question 20

Long-lived assets held for sale are classified as fixed assets.

Accepted Answer

A) True 
 B)False

Exam 10: Long-Term Assets: Fixed and Intangible

Match each account name to the financial statement section (a-i) in which it would appear. -Gain on Sale of Equipment

Computer equipment was acquired at the beginning of the year at a cost of $65,000 that has an estimated residual value of $3,800 and an estimated useful life of eight years. Determine the (a) depreciable cost, (b) straight-line rate, and (c) annual straight-line depreciation.

Carter Co. acquired drilling rights for $18,550,000. The oil deposit is estimated at 74,200,000 gallons. During the current year, 6,000,000 gallons were drilled. Journalize the adjusting entry at December 31 to recognize the depletion expense.Journal Date Description Post. Ref. Debit Credit

Which of the following should be included in the acquisition cost of a piece of equipment?

A capital expenditure results in a debit to a (n)

Classify each of the following costs associated with long-lived assets as one of the following: -Cost of grading and leveling land to be used for a new business site

It is not necessary for a company to use the same depreciation method for all of its fixed assets.

The higher the fixed asset turnover, the

Match the intangible assets described with their proper classification (a-d). ​ -Reputation of a company

For each of the following fixed assets, determine the depreciation expense for Year 3:Disposal date is N/A if asset is still in use.Method: SL = straight-line; DDB = double-declining-balanceAssume the estimated life is five years for each asset.

On December 31, Strike Company sold one of its batting cages for $50,000. The equipment had an original cost of $310,000 and has accumulated depreciation of $260,000. Depreciation has been recorded up to the end of the year. What is the amount of the gain or loss on this transaction?

The natural resources of some companies include

Match the intangible assets described with their proper classification (a-d). ​ -Rights to sell a book and make a profit

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 Date Description Post. Ref. Debit Credit

Equipment with a cost of $220,000 has an estimated residual value of $30,000 and an estimated life of 10 years or 19,000 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 2,100 hours?

A machine costing $185,000 with a five-year life and $20,000 residual value was purchased January 2. Compute depreciation for each of the five years, using the double-declining-balance method.

Long-lived assets held for sale are classified as fixed assets.

Introduction to Accounting and Business

Analyzing Transactions

The Adjusting Process

Completing the Accounting Cycle

Accounting Systems

Accounting for Merchandising Businesses

Inventories

Internal Control and Cash

Receivables

Current Liabilities and Payroll

Accounting for Partnerships and Limited Liability Companies

Corporations: Organization, Stock Transactions, and Dividends

Long-Term Liabilities: Bonds and Notes

Investments and Fair Value Accounting

Statement of Cash Flows

Financial Statement Analysis

Introduction to Managerial Accounting

Job Order Costing

Process Cost Systems

Cost-Volume-Profit Analysis

Evaluating Variances From Standard Costs

Decentralized Operations

Differential Analysis, Product Pricing, and Activity-Based Costing

Capital Investment Analysis

Filters

Match the intangible assets described with their proper classification (a-d). -Reputation of a company

Match the intangible assets described with their proper classification (a-d). -Rights to sell a book and make a profit