Exam 9: Reporting and Interpreting Long-Lived Tangible and Intangible Assets

Complete the table below by placing "X's" in the correct columns to identify the: (1)type of asset and (2)appropriate method of allocating the existing costs that were already recorded.

Which of the following statements about capitalizing costs is correct?

Depletion is different from depreciation and amortization in that depletion is:

A company paid $17,000 for a vehicle that had an estimated useful life of 4 years,total capacity of 100,000 miles,and a residual value of $1,000.After 2 full years of using the vehicle (20,000 miles in Year 1 and 27,000 miles in Year 2),the company sold the vehicle for $6,000 and reported a loss on disposal of $3,480. Required: Determine the method of depreciation that was used by the company.(Show your work using all three methods.)

Why should a company divide up the cost of a "basket purchase" among the different assets purchased?

Intangible assets are:

Which of the following characteristics is not associated with intangible assets?

A gain on the disposal of an asset occurs when the:

When a company records depletion on natural resources,it will have which of the following effects?

Ace Electronics bought a new cash register for $2,500.Ace originally planned to use the cash register for 4 years and then sell it for $200.After 4 years,Ace had recorded $2,300 of depreciation.If Ace continues to use the cash register,still planning to sell it eventually for $200,then Ace should record:

When a company capitalizes a cost,its ______ increase.

Use the information above to answer the following question.Assume the company decides to sell the computer system on July 1,2017 for $1,000,000.Which of the following statements about the journal entry (or entries)required on July 1 is not correct?

A declining fixed asset turnover ratio can be caused by acquiring additional assets in the current period in anticipation of increased revenue in the future.

A trucking company sold its fleet of trucks for $55,000.The trucks originally cost $1,410,000 and had Accumulated Depreciation of $1,269,000 recorded through the date of disposal.What gain or loss did the trucking company record when it sold the fleet of trucks?

When a company sells a long-lived asset,stockholders' equity will change by the:

A real estate management company buys land that contains an abandoned apartment building for $4.5 million.It pays a construction company $500,000 to demolish the apartment building.Which of the following is correct?

Which of the following is not an amount that is needed to calculate straight-line depreciation?

Which of the following phrases best describes the interpretation of the fixed asset turnover ratio?

Which of the following statements about depreciation methods is not correct?

Depreciation is an allocation method,not a valuation method.