Question 1

All of the following are characteristics of plant assets except:

Accepted Answer

A) tangible 
B) used in the business 
C) held as an investment 
D) life longer than one year 
A) tangible 
B) used in the business 
C) held as an investment 
D) life longer than one year

Question 2

Laguna Enterprises is trading in its old schooner for a new model.The old schooner is on the books at a cost of $535,000 with accumulated depreciation of $384,300.The new schooner has a list price of $765,000 but the manufacturer has agreed to reduce this by $125,000 in return for Laguna's old schooner.The new schooner should be recorded on the books at a cost of:

Accepted Answer

A) $640,000 
B) $739,300 
C) $765,000 
D) $790,700 
A) $640,000 
B) $739,300 
C) $765,000 
D) $790,700

Question 3

Use the following to answer questions
Oceanside Enterprises is trading in its old fishing vessel for a new model. The old fishing vessel is on the books at a cost of $364,000 with accumulated depreciation of $314,600. The new fishing vessel has a list price of $538,000 but the manufacturer has agreed to reduce this by $75,000 in return for Oceanside's old fishing vessel.
-The gain or loss recognized on the exchange would be:

Accepted Answer

A) $49,400 loss 
B) $25,600 gain 
C) $75,000 gain 
D) no gain or loss should be recognized 
A) $49,400 loss 
B) $25,600 gain 
C) $75,000 gain 
D) no gain or loss should be recognized

Question 4

Nanotech Inc owns a machine with an original cost of $200,000 and a book value of $60,000.Give the entries to record the following
(a) Sold the machine for $72,000 cash.
(b) Discarded the machine
(c) Sold the machine for $5,000 cash and a $40,000 note

Accepted Answer

The answer of Nanotech Inc owns a machine with an...

Question 5

Olympic Products,Inc.acquired some land,several buildings,and various pieces of equipment at a total cost of $5,600,000.Independent appraisals valued the land at $2,100,000,the buildings at $3,400,000,and the equipment at $500,000.The owner of the company thinks the land should be valued at $1,000,000,the buildings at $3,850,000 and the equipment at $750,000.Using the most appropriate method,what dollar amount should be assigned to each category of asset? Is there any reason the owner might want a higher or lower value assigned to any of the three asset categories?

Accepted Answer

The $5,600,000 purchase price should be

Question 6

Julia Corp has three asset whose market values differ from their book values.
   The market value of the first asset is expected to remain above the book value of Asset #1
for the life of the asset.
The market value of the second asset moves above and below the book value from year to
year.
The market value of the last asset is viewed as a permanent decline below the book value
of the asset.
Required: 
A.Make the entry(ies) necessary to record the differences between the market and book values of the assets.
B.If the book values are adjusted to market values what impact will this have on the depreciation of the adjusted asset?

Accepted Answer

The answer of Julia Corp has three asset whose market...

Question 7

Spataro Industries owns some equipment with an original cost of $53,800 and accumulated depreciation of $26,350.If the equipment is sold for $25,500,the gain or loss recognized on the sale would be:

Accepted Answer

A) $ 850 gain 
B) $ 850 loss 
C) $1,950 gain 
D) $1,950 loss 
A) $ 850 gain 
B) $ 850 loss 
C) $1,950 gain 
D) $1,950 loss

Question 8

Match between columns
                        Premises: Accumulated Depletion
Franchise
Equipment
Accumulated Depreciation
Gold Mine
Land
Patent
Oil Rights

Accepted Answer

The Answer of CNR - Contra Natural Resources and DNR is...

Question 9

Orkney Company has 2-year-old machinery with a book value of $300,000,based on straight-line depreciation.The machinery has a 5 year economic life and $30,000 salvage value.What was the original cost?

Accepted Answer

A) $480,000 
B) $500,000 
C) $530,000 
D) unable to determine from the information given 
A) $480,000 
B) $500,000 
C) $530,000 
D) unable to determine from the information given

Question 10

Healy Fabrication Corp wants to trade in its old drill press for a new one.The old drill press is on the books at a cost of $44,500,and it has a carrying value of $9,300.The new drill press has a list price of $78,700.Make the entry for Healy to acquire the new drill press under each of the following situations:
(
A)Healy accepts the dealers offer to buy the new drill press by trading in the old drill press and paying the difference in cash.The dealer values the old drill press at $8,000.
(b)Healy will trade in the old drill press with a trade in allowance of $30,000 and pay the difference in cash.

Accepted Answer

The answer of Healy Fabrication Corp wants to trade in...

Question 11

Match between columns
                        Premises: The portion of the asset's cost that will be allocated over the useful life of the asset.
The process of allocating the cost of natural resources to an expense over the periods they benefit.
A class of depreciation methods that recognizes more depreciation early in the life than later in the life of the asset.
An expenditure that provides benefits exclusively during the current accounting period.
An expenditure that is expected to benefit future time periods.
The expected fair value of a plant asset at the end of its useful life.
This assumes, for the purpose of calculating depreciation, all assets are purchased half-way through the year.
This depreciation method allocates depreciation at a rate twice the straight-line rate of depreciation.
A method of calculating depreciation that is based on usage of the asset.
This depreciation method allocates the cost of an asset equally over the useful life of the asset.
The process of allocating the cost of intangible assets over their useful life.

Accepted Answer

The Answer of Salvage or residual value and Revenue expenditure is...

Question 12

Kenyon Company purchased land and a building for $270,000.The appraised values of the land and building were $100,000 and $200,000,respectively.The purchase price allocated to the land should be:

Accepted Answer

A) $270,000 
B) $180,000 
C) $100,000 
D) $ 90,000 
A) $270,000 
B) $180,000 
C) $100,000 
D) $ 90,000

Question 13

Which of the following would be classified as an intangible asset?

Accepted Answer

A) land held for future use 
B) machinery 
C) trademark 
D) inventory 
A) land held for future use 
B) machinery 
C) trademark 
D) inventory

Question 14

Which of the following is different for straight-line depreciation and declining balance depreciation?

Accepted Answer

A) cost of asset 
B) salvage value 
C) economic life 
D) amount of depreciation per year 
A) cost of asset 
B) salvage value 
C) economic life 
D) amount of depreciation per year

Question 15

Calculate the depreciation for a $246,000 asset with a $10,000 salvage value that can produce 400,000 units over its 10-year life using the following methods.Assume the asset was purchased Oct 1 ,2009.During 2009 the asset produced 13,000 units and in 2010 it produced 28,000 units.How much depreciation expense will be recorded for 2009 and 2010.Write answers in the spaces below.YOU MUST SHOW YOUR WORK TO RECEIVE ANY CREDIT!

Accepted Answer

(1.)($246,000 - $10,000)/ 10 = $23,600 x

Question 16

Which of the following would be considered a capital expenditure?

Accepted Answer

A) Oil change on a truck 
B) Repair fender damage during shipping 
C) Cost of custom paint job on truck at time of purchase 
D) Repair of radiator 
A) Oil change on a truck 
B) Repair fender damage during shipping 
C) Cost of custom paint job on truck at time of purchase 
D) Repair of radiator

Question 17

Comptel Corporation purchased land,a building and equipment for a total cost of $525,000.The appraised values of the land,building and equipment were $150,000,$375,000 and $75,000,respectively.The purchase price allocated to the land should be:

Accepted Answer

A) $525,000 
B) $150,000 
C) $131,250 
D) $ 65,625 
A) $525,000 
B) $150,000 
C) $131,250 
D) $ 65,625

Question 18

Horizons,Inc.purchased a machine 3 years ago at a price of $64,500.At that time,useful life was estimated at 12 years with a $6,900 salvage value,and straight-line depreciation was used.After recording depreciation for the 3rd year,Horizons decided that for future years it would revise its original estimates from 12 to 8 years and from $6,900 to $5,500.The depreciation expense to be recorded in year 4 of the machine's life is:

Accepted Answer

A) $4,800 
B) $5,575 
C) $8,640 
D) $8,920 
A) $4,800 
B) $5,575 
C) $8,640 
D) $8,920

Question 19

O'Conner Corporation purchased land with a building on it.It removed the old building and constructed a new one.Which of the following costs would not be included in the cost of the building?

Accepted Answer

A) constructing the new building 
B) removing the old building 
C) building permits 
D) foundation 
E) all would be included 
A) constructing the new building 
B) removing the old building 
C) building permits 
D) foundation 
E) all would be included

Question 20

Would a firm prefer straight-line or accelerated depreciation for financial reporting purposes? For tax purposes? Explain.

Accepted Answer

A firm would probably prefer straight-li

All of the following are characteristics of plant assets except:

Nanotech Inc owns a machine with an original cost of $200,000 and a book value of $60,000.Give the entries to record the following (a) Sold the machine for $72,000 cash. (b) Discarded the machine (c) Sold the machine for $5,000 cash and a $40,000 note

Spataro Industries owns some equipment with an original cost of $53,800 and accumulated depreciation of $26,350.If the equipment is sold for $25,500,the gain or loss recognized on the sale would be:

Orkney Company has 2-year-old machinery with a book value of $300,000,based on straight-line depreciation.The machinery has a 5 year economic life and $30,000 salvage value.What was the original cost?

Kenyon Company purchased land and a building for $270,000.The appraised values of the land and building were $100,000 and $200,000,respectively.The purchase price allocated to the land should be:

Which of the following would be classified as an intangible asset?

Which of the following is different for straight-line depreciation and declining balance depreciation?

Which of the following would be considered a capital expenditure?

Comptel Corporation purchased land,a building and equipment for a total cost of $525,000.The appraised values of the land,building and equipment were $150,000,$375,000 and $75,000,respectively.The purchase price allocated to the land should be:

O'Conner Corporation purchased land with a building on it.It removed the old building and constructed a new one.Which of the following costs would not be included in the cost of the building?

Would a firm prefer straight-line or accelerated depreciation for financial reporting purposes? For tax purposes? Explain.

Accounting and Business

Business Processes and Accounting Information

Operating Processes: Planning and Control

Short-Term Decision Making

Strategic Planning Regarding Operating Processes

Planning, The Balanced Scorecard, and Budgeting

Accounting Information Systems

Purchasinghuman Resourcespayment Process: Recording and Evaluating Expenditure Process Activities

Recording and Evaluating Conversion Process Activities

Recording and Evaluating Revenue Process Activities

Time Value of Money

Planning Investments: Capital Budgeting

Planning Equity Financing

Planning Debt Financing

Recording and Evaluating Capital Resource Process Activities: Financing

Company Performance: Profitability

Company Performance: Owners Equity and Financial Position

Company Performance: Cash Flows

Company Performance: Comprehensive Evaluation

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Exam 16: Recording and Evaluating Capital Resource Process Activities: Investing

All of the following are characteristics of plant assets except:

Nanotech Inc owns a machine with an original cost of $200,000 and a book value of $60,000.Give the entries to record the following (a) Sold the machine for $72,000 cash. (b) Discarded the machine (c) Sold the machine for $5,000 cash and a $40,000 note

Spataro Industries owns some equipment with an original cost of $53,800 and accumulated depreciation of $26,350.If the equipment is sold for $25,500,the gain or loss recognized on the sale would be:

Orkney Company has 2-year-old machinery with a book value of $300,000,based on straight-line depreciation.The machinery has a 5 year economic life and $30,000 salvage value.What was the original cost?

Kenyon Company purchased land and a building for $270,000.The appraised values of the land and building were $100,000 and $200,000,respectively.The purchase price allocated to the land should be:

Which of the following would be classified as an intangible asset?

Which of the following is different for straight-line depreciation and declining balance depreciation?

Which of the following would be considered a capital expenditure?

Comptel Corporation purchased land,a building and equipment for a total cost of $525,000.The appraised values of the land,building and equipment were $150,000,$375,000 and $75,000,respectively.The purchase price allocated to the land should be:

O'Conner Corporation purchased land with a building on it.It removed the old building and constructed a new one.Which of the following costs would not be included in the cost of the building?

Would a firm prefer straight-line or accelerated depreciation for financial reporting purposes? For tax purposes? Explain.

Accounting and Business

Business Processes and Accounting Information

Operating Processes: Planning and Control

Short-Term Decision Making

Strategic Planning Regarding Operating Processes

Planning, The Balanced Scorecard, and Budgeting

Accounting Information Systems

Purchasinghuman Resourcespayment Process: Recording and Evaluating Expenditure Process Activities

Recording and Evaluating Conversion Process Activities

Recording and Evaluating Revenue Process Activities

Time Value of Money

Planning Investments: Capital Budgeting

Planning Equity Financing

Planning Debt Financing

Recording and Evaluating Capital Resource Process Activities: Financing

Company Performance: Profitability

Company Performance: Owners Equity and Financial Position

Company Performance: Cash Flows

Company Performance: Comprehensive Evaluation

Filters