A) will be used up within 1 year from the balance sheet date. B) is the same as stockholders' equity. C) is part of inventory. D) is used to produce goods or services that will be sold to customers. A) will be used up within 1 year from the balance sheet date. B) is the same as stockholders' equity. C) is part of inventory. D) is used to produce goods or services that will be sold to customers.

A) should be treated like most other intangible assets and amortized over a useful life of not more than 40 years. B) is an accounting measurement of how well a company's employees behave towards the company's customers. C) should be recorded as a negative value if a company is purchased for less than the net carrying value of its assets. D) is recorded when the purchasers of a business pay more than the fair value of the assets purchased. A) should be treated like most other intangible assets and amortized over a useful life of not more than 40 years. B) is an accounting measurement of how well a company's employees behave towards the company's customers. C) should be recorded as a negative value if a company is purchased for less than the net carrying value of its assets. D) is recorded when the purchasers of a business pay more than the fair value of the assets purchased.

Exam 9: Long-Lived Tangible and Intangible Assets

Marshall Company purchases a machine for $800,000.The machine has an estimated residual value of $40,000.The company expects the machine to produce two million units.The machine is used to make 400,000 units during the current period. If the units-of-production method is used,the depreciation rate is:

(Multiple Choice)

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Question 281

Long-lived assets found on a company's balance sheet may include some assets that have no physical substance.

(True/False)

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Question 282

The proper accounting for natural resources is to record the original cost as an:

(Multiple Choice)

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Question 283

A productive asset:

(Multiple Choice)

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Question 284

Goodwill:

(Multiple Choice)

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Question 285

The "least and latest rule" is:

(Multiple Choice)

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Question 286

There are no significant differences between GAAP and IFRS with regards to the accounting for tangible and intangible assets.

(True/False)

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Question 287

Buckeye Industries purchased a truck and trailer for $81,000.The appraised values of the truck and trailer are $57,000 and $28,500,respectively.What is the amount of the cost that should be assigned to the trailer?

(Multiple Choice)

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Question 288

The useful life of an asset is always measured in units of time,such as years or months.

(True/False)

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Question 289

Beta Co.recorded a loss due to impairment of some of its assets.As a result of this journal entry:

(Multiple Choice)

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Question 290

Depreciation and impairment are different in that:

(Multiple Choice)

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Question 291

On January 1,2018,Superior Mining Co.paid $750,000 for a mineral deposit in Superior,Arizona,and then spent $112,500 to develop the deposit for exploitation.It was estimated that 690,000 total cubic yards could be extracted economically.During 2018,69,000 cubic yards of minerals were extracted;the minerals have not yet been sold. Required: Part a.Compute the amount of depletion expense for 2018. Part b.Prepare the journal entry to record the 2018 depletion.

(Essay)

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Question 292

On January 1,2018,Xit Company bought a new delivery truck for $30,000.Xit plans to use the truck for 4 years,during which it will be driven 50,000 miles.The truck will be worthless at the end of the 4 years.If the truck was driven 15,000 miles in 2018,Depreciation Expense using units-of-production is:

(Multiple Choice)

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Question 293

A company would most likely choose the double-declining balance depreciation method for which of the following long-lived tangible assets?

(Multiple Choice)

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Question 294

At the end of the first year of an asset's life,the declining-balance depreciation:

(Multiple Choice)

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Question 295

A company paid $500,000 to purchase equipment and $15,000 to have the equipment delivered to and installed in the company's production facilities.The equipment is expected to be used a total of 28,000 hours throughout its estimated useful life of six years.The estimated residual value of the equipment is $5,000.The company began using the equipment on May 1,2018.The company has an October 31,2018 year-end.It used the equipment for a total of 11,200 hours between May 1 and October 31,2018.Using the units-of-production method,what amount of depreciation expense would the company report in the income statement prepared for the year-ended October 31,2018?

(Multiple Choice)

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Question 296

Assume that,prior to preparing adjusting entries at the end of the year,Caterpillar Corporation has a fixed asset turnover ratio of 3.4 based on average net fixed assets of $500,000,000.Which of the following year-end adjustments would cause Caterpillar's fixed asset turnover ratio to increase?

(Multiple Choice)

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Question 297

On January 1,2018,Dunbar Echo Co.sells a machine for $46,000.The machine was originally purchased on January 1,2016 for $80,000.The machine was estimated to have a useful life of 5 years and a residual value of $0.Dunbar Echo uses straight-line depreciation.In recording this transaction:

(Multiple Choice)

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Question 298

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

(Multiple Choice)

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Question 299

Showing 281 - 299 of 299

Long-lived assets found on a company's balance sheet may include some assets that have no physical substance.

The proper accounting for natural resources is to record the original cost as an:

A productive asset:

Goodwill:

The "least and latest rule" is:

There are no significant differences between GAAP and IFRS with regards to the accounting for tangible and intangible assets.

Buckeye Industries purchased a truck and trailer for $81,000.The appraised values of the truck and trailer are $57,000 and $28,500,respectively.What is the amount of the cost that should be assigned to the trailer?

The useful life of an asset is always measured in units of time,such as years or months.

Beta Co.recorded a loss due to impairment of some of its assets.As a result of this journal entry:

Depreciation and impairment are different in that:

A company would most likely choose the double-declining balance depreciation method for which of the following long-lived tangible assets?

At the end of the first year of an asset's life,the declining-balance depreciation:

Assume that,prior to preparing adjusting entries at the end of the year,Caterpillar Corporation has a fixed asset turnover ratio of 3.4 based on average net fixed assets of $500,000,000.Which of the following year-end adjustments would cause Caterpillar's fixed asset turnover ratio to increase?

On January 1,2018,Dunbar Echo Co.sells a machine for $46,000.The machine was originally purchased on January 1,2016 for $80,000.The machine was estimated to have a useful life of 5 years and a residual value of $0.Dunbar Echo uses straight-line depreciation.In recording this transaction:

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

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Statement of Cash Flows

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