Exam 16: Accounting for Property, plant, equipment, and Intangible Assets

Ken Applegate owned equipment with an original cost of $30,000 with $20,000 of accumulated depreciation.The equipment was traded in on new equipment costing $50,000 with a trade-in allowance of $8,000 and the balance in cash.Determine the following. a.The book value of the old machine was ________. b.The loss on the exchange was ________. c.The cost basis on the books for the new machine,assuming accounting rules,is ________.

Two depreciation methods that ignore the salvage value are ________ and ________.

An example of an intangible asset is:

The cost of an asset less its accumulated depreciation is called:

All of the following are intangible assets except:

The amortization method and double-declining-balance method are both accelerated depreciation methods.

Some of the past depreciation is canceled in recording an extraordinary repair.

Myers Corporation exchanged an old machine costing $20,000,with an accumulated depreciation of $17,000,and trade-in value of $5,000 for a new machine cash price of $24,000.What is the journal entry?

Journalize the following transactions for PetsRUs: Mar. 5 $\quad$ Sold a truck for $6,000 that cost $9,000 and had an accumulated depreciation of $5,000. Mar. 10 $\quad$ A machine costing $10,000 with accumulated depreciation of $8,000 was destroyed in a fire. No claim was filed. May 15 $\quad$ Traded in a machine costing $20,000, with $15,000 of accumulated depreciation, for a new machine costing $30,000 with a trade-in allowance of $7,000

Prepare journal entries for the following for Bartz,Inc. May 11 Replaced the engine in a Van #1,paying cash of $5,400. May 18 Paid cash for a tune-up of the engine in Van #2 of $570. May 29 Paid cash to add a lift to Van #2 of $3,700

Equipment that originally cost $775 with no salvage value has accumulated depreciation of $700.The equipment is discarded.The transaction to record the discarding of the equipment would result in a:

A tractor costing $80,000 is depreciated using MACRS.The tractor qualifies as a 3-year property,and has a scrap value of $20,000.The depreciation rates are: Year 1: 33.33\% Year 2: 44.45\% Year 3: 14.81\% Year 4: 7.41\% What is the depreciation expense for year 2?

If a coal deposit has 375,000 tons available and was purchased for $750,000,record the removal of 60,000 tons in year 1 and 80,000 tons in year 2.

For each of the following, identify in column 1 the category to which the account belongs, in column 2 the normal balance for the account, in column 3 the financial statement that the account in which the account balance is reported, and in column 4 the account's nature (permanent/temporary). - Column 1 Column 2 Column 3 Column 4 Loss on goodwill

Amortization of a patent was ignored.This error would cause:

A company incorrectly records revenue expenditures as capital expenditures on its books.As a result,which of the following will be true?

The cost of equipment is expensed:

For each of the following, identify in column 1 the category to which the account belongs, in column 2 the normal balance for the account, in column 3 the financial statement that the account in which the account balance is reported, and in column 4 the account's nature (permanent/temporary). - Column 1 Column 2 Column 3 Column 4 Depreciation expense

The write-off of intangible assets is called:

For each of the following, identify in column 1 the category to which the account belongs, in column 2 the normal balance for the account, in column 3 the financial statement that the account in which the account balance is reported, and in column 4 the account's nature (permanent/temporary). - Column 1 Column 2 Column 3 Column 4 Machinery