Question 1

Required:
Determine the amount,if any,of the impairment loss that El Dorado must recognize on these assets.

Accepted Answer

An impairment loss must be recognized be

Question 2

Total depreciation is the same over the life of an asset regardless of the method of depreciation used.

Accepted Answer

A) True 
 B)False

Question 3

Briefly explain how to account for a change in depreciation method.

Accepted Answer

A change in depreciation method is treat

Question 4

Using the straight-line method,depreciation for 2017 and the equipment's book value at December 31,2017,would be:

Accepted Answer

A) $14,400 and $43,200. 
B) $28,800 and $37,200. 
C) $13,200 and $39,600. 
D) $13,200 and $45,600. 
A) $14,400 and $43,200. 
B) $28,800 and $37,200. 
C) $13,200 and $39,600. 
D) $13,200 and $45,600.

Question 5

The factors that need to be determined to compute depreciation are an asset's:

Accepted Answer

A) Cost,residual value,and physical life. 
B) Cost,replacement value,and service life. 
C) Fair value,residual value,and economic life. 
D) Cost,residual value,and service life. 
A) Cost,residual value,and physical life. 
B) Cost,replacement value,and service life. 
C) Fair value,residual value,and economic life. 
D) Cost,residual value,and service life.

Question 6

Canliss Mining uses the replacement method to determine depreciation on its office equipment.During 2014,its first year of operations,office equipment was purchased at a cost of $14,000.Useful life of the equipment averages four years and no salvage value is anticipated.In 2016,equipment costing $5,000 was sold for $600 and replaced with new equipment costing $6,000.Canliss would record 2016 depreciation of:

Accepted Answer

A) $3,500. 
B) $4,400. 
C) $5,400. 
D) None of these answer choices are correct. 
A) $3,500. 
B) $4,400. 
C) $5,400. 
D) None of these answer choices are correct.

Question 7

A change from the straight-line method to the sum-of-years'-digits method of depreciation is handled as:

Accepted Answer

A) A retrospective change back to the date of acquisition as though the current estimated life had been used all along. 
B) A cumulative adjustment to income in the current year for the difference in depreciation under the new versus old useful life estimate. 
C) A prospective change from the current year through the remainder of its useful life. 
D) None of these answer choices are correct. 
A) A retrospective change back to the date of acquisition as though the current estimated life had been used all along. 
B) A cumulative adjustment to income in the current year for the difference in depreciation under the new versus old useful life estimate. 
C) A prospective change from the current year through the remainder of its useful life. 
D) None of these answer choices are correct.

Question 8

Briefly explain the disclosures that are required relative to depreciable assets.

Accepted Answer

The note presenting the summary of signi

Question 9

Using the straight-line method,depreciation for 2017 and book value at December 31,2017,would be:

Accepted Answer

A) $10,000 and $20,000. 
B) $10,000 and $25,000. 
C) $11,250 and $17,500. 
D) $11,250 and $22,500. 
A) $10,000 and $20,000. 
B) $10,000 and $25,000. 
C) $11,250 and $17,500. 
D) $11,250 and $22,500.

Question 10

Briefly explain the following statement.Depreciation is a process of cost allocation,not valuation.

Accepted Answer

Periodic depreciation is not a

Question 11

Prego would report depreciation in 2016 of:

Accepted Answer

A) $36,000. 
B) $43,900. 
C) $18,000. 
D) $21,950. 
A) $36,000. 
B) $43,900. 
C) $18,000. 
D) $21,950.

Question 12

A change in the estimated useful life and residual value of machinery in the current year is handled as:

Accepted Answer

A) A retrospective change back to the date of acquisition as though the current estimated life and residual value had been used all along. 
B) A prospective change from the current year through the remainder of its useful life,using the new estimates. 
C) A cumulative adjustment to income in the current year for the difference in depreciation under the new versus old estimates. 
D) All of these answer choices are incorrect. 
A) A retrospective change back to the date of acquisition as though the current estimated life and residual value had been used all along. 
B) A prospective change from the current year through the remainder of its useful life,using the new estimates. 
C) A cumulative adjustment to income in the current year for the difference in depreciation under the new versus old estimates. 
D) All of these answer choices are incorrect.

Question 13

The normal treatment of litigation costs to successfully defend an intangible right under U.S.GAAP and International Financial Reporting Standards (IFRS),respectively,is:

Accepted Answer

The answer of The normal treatment of litigation costs to...

Question 14

According to International Financial Reporting Standards (IFRS),the revaluation of equipment when fair value exceeds book value,results in:

Accepted Answer

A) An increase in net income. 
B) A decrease in net income. 
C) An increase in other comprehensive income. 
D) A decrease in other comprehensive income. 
A) An increase in net income. 
B) A decrease in net income. 
C) An increase in other comprehensive income. 
D) A decrease in other comprehensive income.

Question 15

Required:
Compute depreciation for 2016 and 2017 and the book value of the spooler at December 31,2016 and 2017,assuming the sum-of-the-years'-digits method is used.

Accepted Answer

Denominator = n(n+1)F1F1F1S1F1F1F10 2 =

Question 16

Using the straight-line method,depreciation for 2016 would be:

Accepted Answer

A) $13,200. 
B) $14,400. 
C) $72,000. 
D) None of these answer choices are correct. 
A) $13,200. 
B) $14,400. 
C) $72,000. 
D) None of these answer choices are correct.

Question 17

Advocates of accelerated depreciation methods argue that their use tends to level out the total cost of ownership of an asset over its benefit period if one considers both depreciation and repair and maintenance costs.

Accepted Answer

A) True 
 B)False

Question 18

On September 30,2016,Sternberg Company sold office equipment for $12,000.The equipment was purchased on March 31,2013,for $24,000.The asset was being depreciated over a five-year life using the straight-line method,with depreciation based on months in service.No residual value was anticipated.
Required:
Prepare the journal entries to record 2016 depreciation and the sale of the equipment.

Accepted Answer

The answer of On September 30,2016,Sternberg Company sold office equipment...

Question 19

Ellen's Antiques reported the following in its December 31,2016,balance sheet:
Equipment $4,000,000
Accumulated depreciation-equipment $3,150,000
In a disclosure note,Ellen's indicates that it uses straight-line depreciation over eight years and estimates salvage value at 10% of cost.
Required: Compute the average age of Ellen's equipment at 12/31/2015.

Accepted Answer

Annual depreciation is ($4,000

Question 20

By the replacement depreciation method,depreciation is recorded when assets are replaced.

Accepted Answer

A) True 
 B)False

Required: Determine the amount,if any,of the impairment loss that El Dorado must recognize on these assets.

Total depreciation is the same over the life of an asset regardless of the method of depreciation used.

Briefly explain how to account for a change in depreciation method.

Using the straight-line method,depreciation for 2017 and the equipment's book value at December 31,2017,would be:

The factors that need to be determined to compute depreciation are an asset's:

A change from the straight-line method to the sum-of-years'-digits method of depreciation is handled as:

Briefly explain the disclosures that are required relative to depreciable assets.

Using the straight-line method,depreciation for 2017 and book value at December 31,2017,would be:

Briefly explain the following statement.Depreciation is a process of cost allocation,not valuation.

Prego would report depreciation in 2016 of:

A change in the estimated useful life and residual value of machinery in the current year is handled as:

The normal treatment of litigation costs to successfully defend an intangible right under U.S.GAAP and International Financial Reporting Standards (IFRS),respectively,is:

According to International Financial Reporting Standards (IFRS),the revaluation of equipment when fair value exceeds book value,results in:

Required: Compute depreciation for 2016 and 2017 and the book value of the spooler at December 31,2016 and 2017,assuming the sum-of-the-years'-digits method is used.

Using the straight-line method,depreciation for 2016 would be:

Advocates of accelerated depreciation methods argue that their use tends to level out the total cost of ownership of an asset over its benefit period if one considers both depreciation and repair and maintenance costs.

By the replacement depreciation method,depreciation is recorded when assets are replaced.

Environment and Theoretical Structure of Financial Accounting

Review of the Accounting Process

The Balance Sheet and Financial Disclosures

The Income Statement, comprehensive Income, and the Statement of Cash Flows

Income Measurement

Time Value of Money Concepts

Cash and Receivables

Inventories: Measurement

Inventories: Additional Issues

Property, plant, and Equipment and Intangible Assets: Acquisition and Disposition

Investments

Current Liabilities and Contingencies

Bonds and Long-Term Notes

Leases

Accounting for Income Taxes

Pensions and Other Postretirement Benefits

Shareholders Equity

Share-Based Compensation and Earnings Per Share

Accounting Changes

The Statement of Cash Flows

Filters

Exam 11: Property, plant, and Equipment and Intangible Assets: Utilization and Impairment

Required: Determine the amount,if any,of the impairment loss that El Dorado must recognize on these assets.

Total depreciation is the same over the life of an asset regardless of the method of depreciation used.

Briefly explain how to account for a change in depreciation method.

Using the straight-line method,depreciation for 2017 and the equipment's book value at December 31,2017,would be:

The factors that need to be determined to compute depreciation are an asset's:

A change from the straight-line method to the sum-of-years'-digits method of depreciation is handled as:

Briefly explain the disclosures that are required relative to depreciable assets.

Using the straight-line method,depreciation for 2017 and book value at December 31,2017,would be:

Briefly explain the following statement.Depreciation is a process of cost allocation,not valuation.

Prego would report depreciation in 2016 of:

A change in the estimated useful life and residual value of machinery in the current year is handled as:

The normal treatment of litigation costs to successfully defend an intangible right under U.S.GAAP and International Financial Reporting Standards (IFRS),respectively,is:

According to International Financial Reporting Standards (IFRS),the revaluation of equipment when fair value exceeds book value,results in:

Required: Compute depreciation for 2016 and 2017 and the book value of the spooler at December 31,2016 and 2017,assuming the sum-of-the-years'-digits method is used.

Using the straight-line method,depreciation for 2016 would be:

Advocates of accelerated depreciation methods argue that their use tends to level out the total cost of ownership of an asset over its benefit period if one considers both depreciation and repair and maintenance costs.

By the replacement depreciation method,depreciation is recorded when assets are replaced.

Environment and Theoretical Structure of Financial Accounting

Review of the Accounting Process

The Balance Sheet and Financial Disclosures

The Income Statement, comprehensive Income, and the Statement of Cash Flows

Income Measurement

Time Value of Money Concepts

Cash and Receivables

Inventories: Measurement

Inventories: Additional Issues

Property, plant, and Equipment and Intangible Assets: Acquisition and Disposition

Investments

Current Liabilities and Contingencies

Bonds and Long-Term Notes

Leases

Accounting for Income Taxes

Pensions and Other Postretirement Benefits

Shareholders Equity

Share-Based Compensation and Earnings Per Share

Accounting Changes

The Statement of Cash Flows

Filters