Question 1

When a plant asset is traded for another similar asset,losses on the asset traded are not recognized.

Accepted Answer

A) True 
 B)False

Question 2

A machine costing $57,000 with a 6-year life and $54,000 depreciable cost was purchased January 1.Compute the yearly depreciation expense using straight-line depreciation.

Accepted Answer

$54,000 ÷

Question 3

A leased asset will appear on the balance sheet as a long-term asset.

Accepted Answer

A) True 
 B)False

Question 4

For income tax purposes,most companies use an accelerated deprecation method called double declining balance.

Accepted Answer

A) True 
 B)False

Question 5

Comment on the validity of the following statements."As an asset loses its ability to provide services,cash needs to be set aside to replace it.Depreciation accomplishes this goal."

Accepted Answer

Depreciation is the periodic t

Question 6

A machine with a cost of $75,000 has an estimated residual value of $5,000 and an estimated life of 4 years or 18,000 hours.What is the amount of depreciation for the second full year,using the double-declining-balance method?

Accepted Answer

A)  $17,500 
B)  $37,500 
C)  $18,750 
D)  $16,667 
A)  $17,500 
B)  $37,500 
C)  $18,750 
D)  $16,667

Question 7

During construction of a building,the cost of interest on a construction loan should be charged to an expense account.

Accepted Answer

A) True 
 B)False

Question 8

The higher the fixed asset turnover,​ the

Accepted Answer

A)  less efficiently a company is using its fixed assets in generating sales 
B)  more efficiently a company is using its fixed assets in generating sales 
C)  more efficiently a company is using its current assets in generating sales 
D)  more efficiently a company is using its intangible assets in generating sales 
A)  less efficiently a company is using its fixed assets in generating sales 
B)  more efficiently a company is using its fixed assets in generating sales 
C)  more efficiently a company is using its current assets in generating sales 
D)  more efficiently a company is using its intangible assets in generating sales

Question 9

Journalize each of the following transactions:

Accepted Answer

The answer of Journalize each of the following transactions:
 ...

Question 10

Golden Sales has bought $135,000 in fixed assets on January 1st associated with sales equipment.The residual value of these assets is estimated at $10,000 at the end of their 4-year service life.Golden Sales managers want to evaluate the options of depreciation.
​
(a)Compute the annual straight-line depreciation and provide the sample depreciation journal entry to be posted
at the end of each of the years.
(b)Write the journal entries for each year of the service life for these assets using the double-declining balance
method.

Accepted Answer

(a) ​ @#IMG-DLM& ​ @#IMG-DLM& ​*Deprecia

Question 11

Equipment was purchased on January 5,year 1,at a cost of $90,000.The equipment had an estimated useful life of 8 years and an estimated residual value of $8,000.
​
After using the equipment for 3 years,the useful life was revised to a total of 10 years and the residual value was reduced to $2,004.
​
Determine the straight-line depreciation expense for the Year 4 and following years.

Accepted Answer

Book value at beginning of Year 4:Cost $

Question 12

Equipment acquired on January 2,Year 1,at a cost of $525,000 has an estimated useful life of eight years and an estimated residual value of $45,000.
Required:

Accepted Answer

The answer of Equipment acquired on January 2,Year 1,at a...

Question 13

On April 15,Compton Co.paid $2,800 to upgrade a delivery truck and $125 for an oil change.Journalize the entries for the upgrade to delivery truck and oil change expenditures.

Accepted Answer

The answer of On April 15,Compton Co.paid $2,800 to upgrade...

Question 14

The following information was taken from a recent annual report of Harrison Company (in millions):
​
   Required:

Accepted Answer

The answer of The following information was taken from a...

Question 15

The book value of a fixed asset reported on the balance sheet represents its market value on that date.

Accepted Answer

A) True 
 B)False

Question 16

On July 1,Hartford Construction purchases a bulldozer for $228,000.The equipment has a 9-year life with a residual value of $16,000.Hartford uses the units-of-output method of depreciation,and the bulldozer is expected to yield 26,500 operating hours.
(a)Calculate the depreciation expense per hour of operation.
(b)The bulldozer is operated 1,250 hours in the first year,2,755 hours in the second year,and 1,225 hours in the
third year of operations.Journalize the depreciation expense for each year.
​

Accepted Answer

(a)Hourly depreciation is:(b)F

Question 17

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

Question 18

The units-of-output depreciation method provides a good match of expenses against revenue.

Accepted Answer

A) True 
 B)False

Question 19

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 20

All property,plant,and equipment assets are depreciated over time.

Accepted Answer

A) True 
 B)False

Exam 9: Long-Term Assets: Fixed and Intangible

When a plant asset is traded for another similar asset,losses on the asset traded are not recognized.

A machine costing $57,000 with a 6-year life and $54,000 depreciable cost was purchased January 1.Compute the yearly depreciation expense using straight-line depreciation.

A leased asset will appear on the balance sheet as a long-term asset.

For income tax purposes,most companies use an accelerated deprecation method called double declining balance.

Comment on the validity of the following statements."As an asset loses its ability to provide services,cash needs to be set aside to replace it.Depreciation accomplishes this goal."

A machine with a cost of $75,000 has an estimated residual value of $5,000 and an estimated life of 4 years or 18,000 hours.What is the amount of depreciation for the second full year,using the double-declining-balance method?

During construction of a building,the cost of interest on a construction loan should be charged to an expense account.

The higher the fixed asset turnover,​ the

Journalize each of the following transactions:

Equipment acquired on January 2,Year 1,at a cost of $525,000 has an estimated useful life of eight years and an estimated residual value of $45,000. Required:

On April 15,Compton Co.paid $2,800 to upgrade a delivery truck and $125 for an oil change.Journalize the entries for the upgrade to delivery truck and oil change expenditures.

The following information was taken from a recent annual report of Harrison Company (in millions): ​ Required:

The book value of a fixed asset reported on the balance sheet represents its market value on that date.

The accumulated depletion of a natural resource is reported​ on the

The units-of-output depreciation method provides a good match of expenses against revenue.

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:

All property,plant,and equipment assets are depreciated over time.

Introduction to Accounting and Business

Analyzing Transactions

The Adjusting Process

Completing the Accounting Cycle

Accounting for Merchandising 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

Introduction to Managerial Accounting

Job Order Costing

Process Cost Systems

Activity-Based Costing

Cost-Volume-Profit Analysis

Variable Costing for Management Analysis

Budgeting

Evaluating Variances From Standard Costs

Evaluating Decentralized Operations

Differential Analysis and Product Pricing

Capital Investment Analysis

Lean Manufacturing and Activity Analysis

Filters

The higher the fixed asset turnover, the

The following information was taken from a recent annual report of Harrison Company (in millions): Required:

The accumulated depletion of a natural resource is reported on the