Question 1

Minerals removed from the earth are classified as intangible assets.

Accepted Answer

A) True 
 B)False

Question 2

A copy machine acquired on May 1 with a cost of $2,545 has an estimated useful life of 3 years. Assuming that it will have a residual value of $445, determine the depreciation for the first and second year by the straight-line method. Round your answers to the nearest whole dollar.

Accepted Answer

Straight-line depreciation = (cost - est

Question 3

The amount of the depreciation expense for the second full year of use of a fixed asset costing $100,000, with an estimated residual value of $5,000 and a useful life of 4 years, is $25,000 by the double-declining-balance method.

Accepted Answer

A) True 
 B)False

Question 4

Eagle Country Club has acquired a lot to construct a clubhouse. Eagle had the following costs related to the construction: $\begin{array}{lr}
\text { Architects' fees } & 45,000 \
\text { Construction labor } & 80,000 \
\text { Engineers' fees } & 15,000 \
\text { Fences around building } & 9,000 \
\text { Grading and leveling } & 10,000 \
\text { Insurance costs incurred during construction } & 7,000 \
\text { Interest on money borrowed for construction } & 5,000 \
\text { Land } & 73,000 \
\text { Buil ding Materials } & 237,000 \
\text { Sales taxes } & 6,000 \
\text { Trees and shrubs } & 6,000
\end{array}$ ​
Determine the cost of the club house to be reported on the balance sheet.

Accepted Answer

The answer of Eagle Country Club has acquired a lot...

Question 5

When a company sells machinery at a price equal to its book value, this transaction would be recorded with an entry that would include the following:

Accepted Answer

A)  debit Cash and Accumulated Depreciation; credit Machinery 
B)  debit Machinery; credit Cash and Accumulated Depreciation 
C)  debit Cash and Machinery; credit Accumulated Depreciation 
D)  debit Cash and Depreciation Expense; credit Accumulated Depreciation 
A)  debit Cash and Accumulated Depreciation; credit Machinery 
B)  debit Machinery; credit Cash and Accumulated Depreciation 
C)  debit Cash and Machinery; credit Accumulated Depreciation 
D)  debit Cash and Depreciation Expense; credit Accumulated Depreciation

Question 6

Match the intangible assets described with their proper classification (a-d).
-Rights to sell a book and make a profit

Accepted Answer

A) Patent 
B) Copyright 
C) Trademark 
D) Goodwill 
A) Patent 
B) Copyright 
C) Trademark 
D) Goodwill

Question 7

Xtra Company purchased a business from Argus for $96,000 above the fair value of its net assets. Argus had developed the goodwill over 12 years. How much would Xtra amortize the goodwill for its first year?

Accepted Answer

A)  $7,000 
B)  $8,000 
C)  goodwill is not amortized 
D)  not enough information to calculate amortization 
A)  $7,000 
B)  $8,000 
C)  goodwill is not amortized 
D)  not enough information to calculate amortization

Question 8

Match between columns
                        Premises:  Fences around land at new business location
 Paved parking areas at new business location
 Outdoor lighting at new business location
 Walkways to surround new business location
 Modifying a building purchased for new business location
 Supplies (materials) used to test new equipment
 Cost of installing new equipment
 Cost of grading and leveling land to be used for a new business site
 Cost of removing an existing building to ready land for use as a new business site
 Cost assessed by city for paving a public street that borders land on which a new business location will be constructed

Accepted Answer

The Answer of Land improvements and Buildings and Land and is...

Question 9

Classify each of the following costs associated with long-lived assets as one of the following:
-Cost of removing an existing building to ready land for use as a new business site

Accepted Answer

A) Land improvements 
B) Buildings 
C) Land 
D) Machinery and equipment 
A) Land improvements 
B) Buildings 
C) Land 
D) Machinery and equipment

Question 10

The double-declining-balance rate for calculating depreciation expense is determined by doubling the straight-line rate. Assuming that an asset has a useful life of 25 years, determine the rate to be used if using the double-declining-balance method.

Accepted Answer

The answer of The double-declining-balance rate for calculating depreciation expense...

Question 11

Which intangible assets are amortized over their useful life?

Accepted Answer

A)  trademarks 
B)  goodwill 
C)  patents 
D)  all of these 
A)  trademarks 
B)  goodwill 
C)  patents 
D)  all of these

Question 12

Revising depreciation estimates affects the amounts of depreciation expense recorded in past periods.

Accepted Answer

A) True 
 B)False

Question 13

A copy machine acquired with a cost of $1,410 has an estimated useful life of 4 years. It is also expected to have a useful operating life of 13,350 copies. Assuming that it will have a residual value of $75, determine the depreciation for the first year by the (a) straight-line method
(b) double-declining-balance method
(c) units-of-output method (4,500 copies were made the first year)

Accepted Answer

@#IMG-DLM&_TB2281_00 (b) Double-declinin

Question 14

What would be the cost basis of a used machine with a purchase price of $77,000, requiring an overhaul costing $8,000, installation costs of $5,000, and special acquisition fees of $3,000?

Accepted Answer

The cost basis of the machine

Question 15

Intangible assets differ from property, plant, and equipment assets in that they lack physical substance.

Accepted Answer

A) True 
 B)False

Question 16

Loss from Impaired Goodwill

Accepted Answer

A) Current Assets 
B) Fixed Assets 
C) Intangible Assets 
D) Current Liability 
E) Long-Term Liability
F)Owners' Equity
G)Revenues
H)Operating Expenses
I)Other Income/Expense 
A) Current Assets 
B) Fixed Assets 
C) Intangible Assets 
D) Current Liability 
E) Long-Term Liability
F)Owners' Equity
G)Revenues
H)Operating Expenses
I)Other Income/Expense

Question 17

Patents are exclusive rights to produce and sell goods with one or more unique features.

Accepted Answer

A) True 
 B)False

Question 18

Match between columns
                        Premises: oil reserve
goodwill
gold mine
U.S. Treasury note
computer
patent
land used for employee parking

Accepted Answer

The Answer of fixed asset (FA) and none of these is...

Question 19

Classify each of the following as:
-Installing a new air conditioning system in an old building

Accepted Answer

A) Ordinary maintenance and repairs 
B) Asset improvements 
C) Extraordinary repairs 
A) Ordinary maintenance and repairs 
B) Asset improvements 
C) Extraordinary repairs

Question 20

The accumulated depletion of a natural resource is reported on the

Accepted Answer

A)  balance sheet as depreciation from the cost of the resource 
B)  income statement as an increase in revenue 
C)  balance sheet as a deduction from the cost of the resource 
D)  income statement as a deduction from revenues 
A)  balance sheet as depreciation from the cost of the resource 
B)  income statement as an increase in revenue 
C)  balance sheet as a deduction from the cost of the resource 
D)  income statement as a deduction from revenues

Minerals removed from the earth are classified as intangible assets.

A copy machine acquired on May 1 with a cost of $2,545 has an estimated useful life of 3 years. Assuming that it will have a residual value of $445, determine the depreciation for the first and second year by the straight-line method. Round your answers to the nearest whole dollar.

The amount of the depreciation expense for the second full year of use of a fixed asset costing $100,000, with an estimated residual value of $5,000 and a useful life of 4 years, is $25,000 by the double-declining-balance method.

When a company sells machinery at a price equal to its book value, this transaction would be recorded with an entry that would include the following:

Match the intangible assets described with their proper classification (a-d). -Rights to sell a book and make a profit

Xtra Company purchased a business from Argus for $96,000 above the fair value of its net assets. Argus had developed the goodwill over 12 years. How much would Xtra amortize the goodwill for its first year?

Classify each of the following costs associated with long-lived assets as one of the following: -Cost of removing an existing building to ready land for use as a new business site

The double-declining-balance rate for calculating depreciation expense is determined by doubling the straight-line rate. Assuming that an asset has a useful life of 25 years, determine the rate to be used if using the double-declining-balance method.

Which intangible assets are amortized over their useful life?

Revising depreciation estimates affects the amounts of depreciation expense recorded in past periods.

What would be the cost basis of a used machine with a purchase price of $77,000, requiring an overhaul costing $8,000, installation costs of $5,000, and special acquisition fees of $3,000?

Intangible assets differ from property, plant, and equipment assets in that they lack physical substance.

Loss from Impaired Goodwill

Patents are exclusive rights to produce and sell goods with one or more unique features.

Classify each of the following as: -Installing a new air conditioning system in an old building

The accumulated depletion of a natural resource is reported on the

Accounting and Business

Double-Entry Accounting

Adjustments: Accruals and Deferrals

The Accounting Cycle

Accounting for Retail Businesses

Inventories

Internal Control and Cash

Receivables

Liabilities: Current, Installment Notes, and Contingencies

Liabilities: Bonds Payable

Corporations: Organization, Stock Transactions, and Dividends

Statement of Cash Flows

Financial Statement Analysis

Investments

Filters

Exam 9: Long-Term Assets: Fixed and Intangible

Minerals removed from the earth are classified as intangible assets.

A copy machine acquired on May 1 with a cost of $2,545 has an estimated useful life of 3 years. Assuming that it will have a residual value of $445, determine the depreciation for the first and second year by the straight-line method. Round your answers to the nearest whole dollar.

The amount of the depreciation expense for the second full year of use of a fixed asset costing $100,000, with an estimated residual value of $5,000 and a useful life of 4 years, is $25,000 by the double-declining-balance method.

When a company sells machinery at a price equal to its book value, this transaction would be recorded with an entry that would include the following:

Match the intangible assets described with their proper classification (a-d). -Rights to sell a book and make a profit

Xtra Company purchased a business from Argus for $96,000 above the fair value of its net assets. Argus had developed the goodwill over 12 years. How much would Xtra amortize the goodwill for its first year?

Classify each of the following costs associated with long-lived assets as one of the following: -Cost of removing an existing building to ready land for use as a new business site

The double-declining-balance rate for calculating depreciation expense is determined by doubling the straight-line rate. Assuming that an asset has a useful life of 25 years, determine the rate to be used if using the double-declining-balance method.

Which intangible assets are amortized over their useful life?

Revising depreciation estimates affects the amounts of depreciation expense recorded in past periods.

What would be the cost basis of a used machine with a purchase price of $77,000, requiring an overhaul costing $8,000, installation costs of $5,000, and special acquisition fees of $3,000?

Intangible assets differ from property, plant, and equipment assets in that they lack physical substance.

Loss from Impaired Goodwill

Patents are exclusive rights to produce and sell goods with one or more unique features.

Classify each of the following as: -Installing a new air conditioning system in an old building

The accumulated depletion of a natural resource is reported on the

Accounting and Business

Double-Entry Accounting

Adjustments: Accruals and Deferrals

The Accounting Cycle

Accounting for Retail Businesses

Inventories

Internal Control and Cash

Receivables

Liabilities: Current, Installment Notes, and Contingencies

Liabilities: Bonds Payable

Corporations: Organization, Stock Transactions, and Dividends

Statement of Cash Flows

Financial Statement Analysis

Investments

Filters