Exam 8: Inventory

Use the following information for questions 45-46. Picton Farms purchased some equipment on January 1, 2017 for $12,600. The equipment has an estimated useful life of 10 years and an estimated residual value of $1,200. The company uses double-declining-balance depreciation. -The net book value on January 1, 2018 would be

When capitalizing the cost of a purchased asset, all of the following cost should be included in capitalization except for

The Canada Revenue Agency allows corporations to deduct the following when calculating taxable income

Losses on the cash sale of capital assets

Which of the following is an example of an intangible with an indefinite life?

Use the following information for questions 47-49. On January 1, 2017, Bronson Co. purchased some equipment that initially cost $52,800. Additional costs included freight costs $300, non-refundable taxes $6,400, and installation $500. Estimated residual value is $2,000. The company uses a straight-line rate of 10%. -Accumulated depreciation at the end of 2019 would be

Use the following information for questions 47-49. On January 1, 2017, Bronson Co. purchased some equipment that initially cost $52,800. Additional costs included freight costs $300, non-refundable taxes $6,400, and installation $500. Estimated residual value is $2,000. The company uses a straight-line rate of 10%. -Depreciation expense for 2017 was

Use the following information for questions 43-44. Jeremiah Co. purchased a machine on January 1, 2017 for $22,500. The machine had an estimated useful life of 10 years and an estimated residual value of $2,500. The company uses double-declining-balance depreciation. -What will be the depreciation expense for 2017?

Which of the following statements is true with respect to intangible assets with indefinite lives?

Which of the following amortization methods ignore residual value in the calculation of the annual depreciation expense?

The unexpensed portion of an depreciable asset is called

An asset with an original cost of $75,000, a residual value of $7,500, and a useful life of 5 years is given away without any consideration at the end of year five. The entry to record this is

According to accounting standards, the method of depreciation chosen should

Which of the following methods of amortization is a company most likely to use for financial statement purposes if it purchases a patent?

A company is depreciating a $1,000,000 building using a straight-line rate of 5%. The building has an estimated residual value of $200,000. What would the amount of depreciation be in the first year using the straight-line method and the double-declining-balance method?

Use the following information for questions 47-49. On January 1, 2017, Bronson Co. purchased some equipment that initially cost $52,800. Additional costs included freight costs $300, non-refundable taxes $6,400, and installation $500. Estimated residual value is $2,000. The company uses a straight-line rate of 10%. -What would the depreciation expense be for 2017 if Bronson Co. used the double-declining-balance method?

Use the following information for questions 43-44. Jeremiah Co. purchased a machine on January 1, 2017 for $22,500. The machine had an estimated useful life of 10 years and an estimated residual value of $2,500. The company uses double-declining-balance depreciation. -If Jeremiah Co. used the straight-line method of depreciation, what would the carrying value of the machine be at the end of 2017?

The correct entry to record the annual depreciation expense for a long-term asset is

An asset that cost $16,200 with a residual value of $1,200 and a useful life of 5 years was depreciated for two years using the straight-line method. In the third year, the useful life was determined to be 2 years longer than initially expected. Depreciation in the third year would be

Which of the following is NOT a tangible capital asset?