Exam 9: Reporting and Analyzing Long-Lived Assets

Intangible assets involve rights, privileges, and/or competitive advantages that result from ownership of identifiable assets that do not possess physical substance.

The cost of land does not include

A characteristic of property, plant, and equipment is that it is

On April 1, 2022, a machine was purchased for $33,600.It was estimated that it would have a $3,200 residual value at the end of its 5-year useful life.It was also estimated that the machine would be used for a total of 80,000 hours over the 5 years.If the actual number of machine hours used in 2022 was 12,000 hours and the company uses the units-of-production method of depreciation, the depreciation expense for 2022 would be

Aye Corp.purchases a remote-site building for computer operations.The building will be suitable for operations after some necessary expenditures.The wiring must be replaced to handle the computer specifications.The roof is leaking and must be replaced.All rooms must be repainted and re-carpeted and there will also be some updating of the plumbing needed.Which of the following statements is true?

An intangible asset with a finite life is always amortized over:

In recording the acquisition cost of an entire business

Using the diminishing-balance method results in higher expense in the early years, resulting in lower net income.

On July 1, 2022, a machine with a useful life of five years and a residual value of $4,000 was purchased for $20,000.Under straight-line depreciation, what is the depreciation expense for calendar 2023?

An item of property, plant, and equipment is considered to be impaired if its carrying amount exceeds its recoverable amount.

Profit margin can be determined by multiplying the asset turnover by the return on assets.

The carrying amount of an asset is equal to the

Management should select the depreciation method that

In calculating depreciation, residual value is