Exam 9: Long-Term Assets: Fixed and Intangible

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?

Which of the following is true?

A characteristic of a fixed asset is that it is

A fixed asset's estimated value at the time it is to be retired from service is called

A fixed asset with a cost of $52,000 and accumulated depreciation of $47,500 is traded for a similar asset priced at $60,000 (fair market value)in a transaction with commercial substance.Assuming a trade-in allowance of $5,000,at what cost will the new equipment be recorded in the books?

An asset was purchased for $120,000 on January 1,Year 1 and originally estimated to have a useful life of 10 years with a residual value of $10,000.At the beginning of the third year,it was determined that the remaining useful life of the asset was only 4 years with a residual value of $2,000.Calculate the third-year depreciation expense using the revised amounts and straight-line method.

The journal entry for recording payment for the short-term lease of a fixed asset would

The formula for depreciable cost is

Residual value is also known as all of the following except

Which of the following is included in the cost of land?

Equipment purchased at the beginning of the fiscal year for $360,000 is expected to have a useful life of 5 years,or 14,000 operating hours,and a residual value of $10,000.Compute the depreciation for the first and second years of use by each of the following methods: ​

Carter Co.acquired drilling rights for $18,550,000.The oil deposit is estimated at 74,200,000 gallons.During the current year,6,000,000 gallons were drilled.Journalize the adjusting entry at December 31 to recognize the depletion expense. Journal

The cost of new equipment is called a revenue expenditure because it will help generate revenues in the future.

The ratio measuring the number of dollars of sales earned per dollar of fixed assets is ​the

As a company records depreciation expense for a period of time,cash is accumulated to replace fixed assets as they wear out.

The Bacon Company acquired new machinery with a price of $15,200 by trading in similar old machinery and paying $12,700.The old machinery originally cost $9,000 and had accumulated depreciation of $5,000.In recording this transaction,Bacon Company should record

Expenditures for research and development are generally recorded as