Question 1

The three usual means for disposal of an asset are: _________________________________________________________.

Accepted Answer

discarding

Question 2

A company entered into the following transactions concerning its computer system.
On January 1,2012,it purchased a computer system that cost $1,480,000.The estimated useful life of the computer is 3 years and salvage value is $40,000.Straight-line depreciation is to be used.On January 1,2013,the company determined that the estimated useful life of the computer would be 4 years instead of 3 years.The estimated salvage value will only be $10,000.
a.Prepare the journal entry to record depreciation expense for 2012.
b.Prepare the journal entry to record depreciation expense for 2013.

Accepted Answer

a. @#IMG-DLM&_TB6947_00_TB6947

Question 3

A company purchased a mineral deposit for $800,000.It expects this property to produce 1,200,000 tons of ore and to have a salvage value of $50,000.In the current year,the company mined and sold 90,000 tons of ore.Its depletion expense for the current period is equal to:

Accepted Answer

A) $15,000 
B) $60,000 
C) $150,000 
D) $56,250 
E) $139,500 
A) $15,000 
B) $60,000 
C) $150,000 
D) $56,250 
E) $139,500

Question 4

Describe the accounting for intangible assets,including their acquisition,cost allocation,and accounts involved.

Accepted Answer

Intangible assets are recorded at acquis

Question 5

A company purchased a machine valued at $66,000.It traded in an old (similar) machine for a $9,000 trade-in allowance,meaning the company paid $57,000 cash with the trade-in.The old machine cost $44,000 and had accumulated depreciation of $36,000.What is the recorded value of the new machine?

Accepted Answer

A) $8,000 
B) $9,000 
C) $57,000 
D) $65,000 
E) $66,000 
A) $8,000 
B) $9,000 
C) $57,000 
D) $65,000 
E) $66,000

Question 6

Assume BizChair.com sold a used conveyor belt for $172,000 cash.If accumulated depreciation on the sale date was $58,311 and a gain of $6,721 was recognized on the sale,what was the original cost of the asset?

Accepted Answer

A) $223,590 
B) $216,869 
C) $165,279 
D) $65,032 
E) $113,689 
A) $223,590 
B) $216,869 
C) $165,279 
D) $65,032 
E) $113,689

Question 7

A company sold a machine that originally cost $100,000 for $60,000 cash.The accumulated depreciation on the machine was $40,000.The company should recognize a:

Accepted Answer

A) $0 gain or loss 
B) $20,000 gain 
C) $20,000 loss 
D) $40,000 loss 
E) $60,000 gain 
A) $0 gain or loss 
B) $20,000 gain 
C) $20,000 loss 
D) $40,000 loss 
E) $60,000 gain

Question 8

Goodwill is the amount by which a company's value exceeds the value of its individual assets and liabilities.

Accepted Answer

A) True 
 B)False

Question 9

Ordinary repairs are expenditures that keep assets in normal,good operating condition.

Accepted Answer

A) True 
 B)False

Question 10

Explain the purpose and method of depreciation for partial years.

Accepted Answer

Partial year's depreciation is often req

Question 11

The going-concern principle supports the reporting of plant assets at book value rather than market value.

Accepted Answer

A) True 
 B)False

Question 12

A company's property records revealed the following information about its plant assets:
   Calculate the depreciation expense for each machine for the year ended December 31,2013,and for the year ended December 31,2012.
Machine 1:
2012 _______________________
2013 _______________________
Machine 2:
2012 _______________________
2013 _______________________

Accepted Answer

Machine 1:
2012: [($42,000 - $

Question 13

A company had a bulldozer destroyed by fire.The bulldozer originally cost $125,000.The accumulated depreciation on it was $60,000.The proceeds from the insurance company were $90,000.The company should recognize:

Accepted Answer

A) A loss of $25,000. 
B) A gain of $25,000. 
C) A loss of $65,000. 
D) A gain of $65,000. 
E) A gain of $90,000. 
A) A loss of $25,000. 
B) A gain of $25,000. 
C) A loss of $65,000. 
D) A gain of $65,000. 
E) A gain of $90,000.

Question 14

A company purchased land on which to construct a new building for a cost of $250,000.Additional costs incurred were:
   What total dollar amount should be charged to land and what amount should be charged to the new building?

Accepted Answer

All costs should be charged to

Question 15

A company purchased property for $100,000.The property included a building,a parking lot and land.The building was appraised at $62,000; the land at $45,000 and the parking lot at $18,000.The value of the land that will be included in the accounting record is:

Accepted Answer

A) $0 
B) $36,000 
C) $42,000 
D) $45,000 
E) $100,000 
A) $0 
B) $36,000 
C) $42,000 
D) $45,000 
E) $100,000

Question 16

Both the straight-line depreciation method and the double-declining-balance depreciation method:

Accepted Answer

A) Produce the same total depreciation over an asset's useful life. 
B) Produce the same depreciation expense each year. 
C) Produce the same book value each year. 
D) Are acceptable for tax purposes only. 
E) Are the only acceptable methods of depreciation for financial reporting. 
A) Produce the same total depreciation over an asset's useful life. 
B) Produce the same depreciation expense each year. 
C) Produce the same book value each year. 
D) Are acceptable for tax purposes only. 
E) Are the only acceptable methods of depreciation for financial reporting.

Question 17

A company purchased equipment valued at $200,000 on January 1.The equipment has an estimated useful life of six years or 5 million units.The equipment is estimated to have a salvage value of $13,400.
-Assuming the straight-line method of depreciation,what is the depreciation for the second year?

Accepted Answer

A)  $41,445.91 
B) $62,137.80 
C) $31,100.00 
D) $55,980.00 
E) $33,333.00 
A)  $41,445.91 
B) $62,137.80 
C) $31,100.00 
D) $55,980.00 
E) $33,333.00

Question 18

Giant Green Company pays $3,000,000 for a tract of land with two buildings on it.It plans to demolish Building 1 and build a new store in its place.Building 2 will be a company office; it is appraised at $742,000,with a useful life of 25 years and a $75,000 salvage value.A lighted parking lot near Building 1 has improvements (Land Improvements 1) valued at $400,500 that are expected to last another 18 years with no salvage value.Without the buildings and improvements,the tract of land is valued at $2,020,600.Giant Green also incurs the following additional costs: 
 
-What is the amount that should be recorded for Building #2?

Accepted Answer

A)  $600,200 
B) $742,000 
C) $667,000 
D) $703,800 
E) $487,921 
A)  $600,200 
B) $742,000 
C) $667,000 
D) $703,800 
E) $487,921

Question 19

_________________________ are capital expenditures that make a plant asset more productive; they often involve adding a component to an asset or replacing one of its old components with a better one and do not always increase an asset's life.

Accepted Answer

The answer of _________________________ are capital expenditures that make a...

Question 20

Decision makers and other users of financial statements are especially interested in evaluating a company's ability to use its assets in generating sales.

Accepted Answer

A) True 
 B)False

The three usual means for disposal of an asset are: _________________________________________________________.

A company purchased a mineral deposit for $800,000.It expects this property to produce 1,200,000 tons of ore and to have a salvage value of $50,000.In the current year,the company mined and sold 90,000 tons of ore.Its depletion expense for the current period is equal to:

Describe the accounting for intangible assets,including their acquisition,cost allocation,and accounts involved.

A company purchased a machine valued at $66,000.It traded in an old (similar) machine for a $9,000 trade-in allowance,meaning the company paid $57,000 cash with the trade-in.The old machine cost $44,000 and had accumulated depreciation of $36,000.What is the recorded value of the new machine?

Assume BizChair.com sold a used conveyor belt for $172,000 cash.If accumulated depreciation on the sale date was $58,311 and a gain of $6,721 was recognized on the sale,what was the original cost of the asset?

A company sold a machine that originally cost $100,000 for $60,000 cash.The accumulated depreciation on the machine was $40,000.The company should recognize a:

Goodwill is the amount by which a company's value exceeds the value of its individual assets and liabilities.

Ordinary repairs are expenditures that keep assets in normal,good operating condition.

Explain the purpose and method of depreciation for partial years.

The going-concern principle supports the reporting of plant assets at book value rather than market value.

A company's property records revealed the following information about its plant assets: Calculate the depreciation expense for each machine for the year ended December 31,2013,and for the year ended December 31,2012. Machine 1: 2012 ___________ 2013 _ Machine 2: 2012 _ 2013 ___________

A company had a bulldozer destroyed by fire.The bulldozer originally cost $125,000.The accumulated depreciation on it was $60,000.The proceeds from the insurance company were $90,000.The company should recognize:

A company purchased land on which to construct a new building for a cost of $250,000.Additional costs incurred were: What total dollar amount should be charged to land and what amount should be charged to the new building?

A company purchased property for $100,000.The property included a building,a parking lot and land.The building was appraised at $62,000; the land at $45,000 and the parking lot at $18,000.The value of the land that will be included in the accounting record is:

Both the straight-line depreciation method and the double-declining-balance depreciation method:

A company purchased equipment valued at $200,000 on January 1.The equipment has an estimated useful life of six years or 5 million units.The equipment is estimated to have a salvage value of $13,400. -Assuming the straight-line method of depreciation,what is the depreciation for the second year?

_________________________ are capital expenditures that make a plant asset more productive; they often involve adding a component to an asset or replacing one of its old components with a better one and do not always increase an asset's life.

Decision makers and other users of financial statements are especially interested in evaluating a company's ability to use its assets in generating sales.

Introducing Financial Accounting

Accounting System and Financial Statements

Adjusting Accounts for Financial Statements

Reporting and Analyzing Merchandising Operations

Reporting and Analyzing Inventories

Reporting and Analyzing Cash and Internal Controls

Reporting and Analyzing Receivables

Reporting and Analyzing Current Liabilities

Reporting and Analyzing Long-Term Liabilities

Reporting and Analyzing Equity

Reporting and Analyzing Cash Flows

Analyzing and Interpreting Financial Statements

Applying Present and Future Values

Investments and International Operations

Accounting for Partnerships

Accounting With Special Journals

Filters

Exam 8: Reporting and Analyzing Long-Term Assets

The three usual means for disposal of an asset are: _________________________________________________________.

A company purchased a mineral deposit for $800,000.It expects this property to produce 1,200,000 tons of ore and to have a salvage value of $50,000.In the current year,the company mined and sold 90,000 tons of ore.Its depletion expense for the current period is equal to:

Describe the accounting for intangible assets,including their acquisition,cost allocation,and accounts involved.

A company purchased a machine valued at $66,000.It traded in an old (similar) machine for a $9,000 trade-in allowance,meaning the company paid $57,000 cash with the trade-in.The old machine cost $44,000 and had accumulated depreciation of $36,000.What is the recorded value of the new machine?

Assume BizChair.com sold a used conveyor belt for $172,000 cash.If accumulated depreciation on the sale date was $58,311 and a gain of $6,721 was recognized on the sale,what was the original cost of the asset?

A company sold a machine that originally cost $100,000 for $60,000 cash.The accumulated depreciation on the machine was $40,000.The company should recognize a:

Goodwill is the amount by which a company's value exceeds the value of its individual assets and liabilities.

Ordinary repairs are expenditures that keep assets in normal,good operating condition.

Explain the purpose and method of depreciation for partial years.

The going-concern principle supports the reporting of plant assets at book value rather than market value.

A company had a bulldozer destroyed by fire.The bulldozer originally cost $125,000.The accumulated depreciation on it was $60,000.The proceeds from the insurance company were $90,000.The company should recognize:

A company purchased land on which to construct a new building for a cost of $250,000.Additional costs incurred were: What total dollar amount should be charged to land and what amount should be charged to the new building?

A company purchased property for $100,000.The property included a building,a parking lot and land.The building was appraised at $62,000; the land at $45,000 and the parking lot at $18,000.The value of the land that will be included in the accounting record is:

Both the straight-line depreciation method and the double-declining-balance depreciation method:

A company purchased equipment valued at $200,000 on January 1.The equipment has an estimated useful life of six years or 5 million units.The equipment is estimated to have a salvage value of $13,400. -Assuming the straight-line method of depreciation,what is the depreciation for the second year?

_________________________ are capital expenditures that make a plant asset more productive; they often involve adding a component to an asset or replacing one of its old components with a better one and do not always increase an asset's life.

Decision makers and other users of financial statements are especially interested in evaluating a company's ability to use its assets in generating sales.

Introducing Financial Accounting

Accounting System and Financial Statements

Adjusting Accounts for Financial Statements

Reporting and Analyzing Merchandising Operations

Reporting and Analyzing Inventories

Reporting and Analyzing Cash and Internal Controls

Reporting and Analyzing Receivables

Reporting and Analyzing Current Liabilities

Reporting and Analyzing Long-Term Liabilities

Reporting and Analyzing Equity

Reporting and Analyzing Cash Flows

Analyzing and Interpreting Financial Statements

Applying Present and Future Values

Investments and International Operations

Accounting for Partnerships

Accounting With Special Journals

Filters