Exam 9: Long-Lived Tangible and Intangible Assets

On January 1,2018,Orangewood Industries bought a new cash register for $7,500.Orangewood plans to use the cash register for 4 years and then sell it for $600.If Orangewood uses straight-line depreciation,depreciation expense for the year ended December 31,2018 equals:

The carrying value of a long-lived asset is referred to as its:

Company A uses an accelerated depreciation method while Company B uses the straight-line method for an asset of the same cost and useful life.Other things being equal,which of the following is correct?

MacKenzie Manufacturing purchased equipment for $160,000.In addition,shipping charges of $2,000 were incurred to obtain the equipment.The company paid $12,500 to construct a foundation and install the equipment.The equipment is estimated to have a residual value of $15,000 at the end of its 5-year useful life. Using the straight-line method,what is the amount of depreciation expense each year?

Tidy Limited purchased a new van on January 1,2018.The van cost $20,000.It has an estimated life of five years and the estimated residual value is $5,000.Tidy uses the double-declining-balance method to compute depreciation. What is the depreciation expense for 2018?

If a company wants exclusive rights to artistic material,it should obtain:

If Company A has a contractual right to sell certain products or services,use certain trademarks,or perform activities in a certain geographical regions,then Company A has:

Match each term with the appropriate explanation.Not all explanations will be used. -Carrying value

The company has net sales revenue of $3.6 million during 2018.The company's records also included the following information: What is the company's fixed asset turnover ratio for 2018?

Sierra Nevada Corp.reported Sales Revenue of $500,000,000 and Sales Discounts of $4,000,000 for the year.The beginning balance of Net Plant and Equipment was $23,000,000,and the ending balance was $27,000,000.What is the fixed asset turnover ratio?

Match each term with the appropriate definition.Not all definitions will be used. -Licensing right

Once the depreciation expense for a long-lived asset is calculated:

An asset's book value or carrying value is its:

On December 31,2018,Far Niente Winery sold a wine press for $545,000;the wine press had originally cost $900,000.Cash was paid by the buyer of the press.Accumulated Depreciation on the press,updated to the date of disposal,was $450,000. What is the effect of the sale on the balance sheet and income statement of Far Niente reported as of and for the year ended December 31,2018?

Match each term with the appropriate definition.Not all definitions will be used. -Fixed asset turnover ratio

Morris Lest,Inc.sold its truck and received less cash than the truck's book value.The net effect of this sale on the accounting equation is a(n):

The fixed asset turnover ratio measures the:

Which of McGraw-Hill's intangible assets gives it the legal right to prevent you from borrowing a textbook from a friend and photocopying several chapters from the book?

What is the effect of an impairment loss on the accounting equation?

Accumulated Depreciation: