Question 1

Using the sum-of-the years'-digits method, depreciation for 2014 and book value at December 31, 2014, would be

Accepted Answer

A) $13,500 and $13,500. 
B) $13,500 and $8,500. 
C) $12,000 and $17,000. 
D) $12,000 and $12,000. 
A) $13,500 and $13,500. 
B) $13,500 and $8,500. 
C) $12,000 and $17,000. 
D) $12,000 and $12,000.

Question 2

Using the double-declining balance method, depreciation for 2013 and book value at December 31, 2013, would be:

Accepted Answer

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

Question 3

Entry to record the impairment loss:

Accepted Answer

The answer of Entry to record the impairment loss:...

Question 4

Using the straight-line method, depreciation for 2014 and book value at December 31, 2014, 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 5

In testing for recoverability of property, plant, and equipment, an impairment loss is required if the:

Accepted Answer

A) Asset's book value exceeds the undiscounted sum of expected future cash flows. 
B) Undiscounted sum of its expected future cash flows exceeds the asset's book value. 
C) Present value of expected future cash flows exceeds its book value. 
D) None of the above is correct. 
A) Asset's book value exceeds the undiscounted sum of expected future cash flows. 
B) Undiscounted sum of its expected future cash flows exceeds the asset's book value. 
C) Present value of expected future cash flows exceeds its book value. 
D) None of the above is correct.

Question 6

Required:
Compute depreciation for 2013 and 2014 and the book value of the drill press at December 31, 2013 and 2014, assuming the straight-line method is used.

Accepted Answer

The answer of Required:
Compute depreciation for 2013 and 2014 and...

Question 7

Using the sum-of-the-years'-digits method, depreciation for 2013 and book value at December 31, 2013, would be:

Accepted Answer

A) $22,000 and $44,000. 
B) $22,000 and $50,000. 
C) $24,000 and $48,000. 
D) $24,000 and $42,000. 
A) $22,000 and $44,000. 
B) $22,000 and $50,000. 
C) $24,000 and $48,000. 
D) $24,000 and $42,000.

Question 8

According to International Financial Reporting Standards, the impairment loss for property, plant, and equipment is the difference between book value and:

Accepted Answer

A) The undiscounted sum of estimated future cash flows. 
B) The present value of future cash flows. 
C) Fair value less costs to sell. 
D) The higher of the present value of estimated future cash flows and the fair value less costs to sell. 
A) The undiscounted sum of estimated future cash flows. 
B) The present value of future cash flows. 
C) Fair value less costs to sell. 
D) The higher of the present value of estimated future cash flows and the fair value less costs to sell.

Question 9

Short Corporation purchased Hathaway, Inc., for $52,000,000. The fair value of all Hathaway's identifiable tangible and intangible assets was $48,000,000. Short will amortize any goodwill over the maximum number of years allowed. What is the annual amortization of goodwill for this acquisition?

Accepted Answer

A) $100,000. 
B) $400,000. 
C) $200,000. 
D) $0. 
A) $100,000. 
B) $400,000. 
C) $200,000. 
D) $0.

Question 10

Gonzaga Company has used the double-declining-balance method for depreciation since it started business in 2009. At the beginning of 2013, the company decided to change to the straight-line method. Depreciation as reported and what it would have been reported if the company had always used straight-line is listed below:   Required:
What journal entry, if any, should Gonzaga make to record the effect of the accounting change (ignore income taxes)? Explain.

Accepted Answer

The change in depreciation method is tre

Question 11

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 12

According to International Financial Reporting Standards, biological assets are valued at:

Accepted Answer

A) Cost less accumulated depreciation. 
B) Fair value less estimated costs to sell. 
C) Cost less accumulated depletion. 
D) None of the above. 
A) Cost less accumulated depreciation. 
B) Fair value less estimated costs to sell. 
C) Cost less accumulated depletion. 
D) None of the above.

Question 13

Required:
Compute depreciation for 2013 and 2014 and the book value of the drill press at December 31, 2013 and 2014, assuming the units-of-production method is used.

Accepted Answer

@#IMG-DLM& 2013 depreciation:

Question 14

According to International Financial Reporting Standards, 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

International Financial Reporting Standards require goodwill to be tested for impairment at least annually.

Accepted Answer

A) True 
 B)False

Question 16

Asset C3PO has a depreciable base of $16.5 million and a service life of 10 years. What would the accumulated depreciation be at the end of year five under the sum-of-the-years' digits method?

Accepted Answer

A) $4.5 million. 
B) $8.25 million. 
C) $12 million. 
D) None of the above is correct. 
A) $4.5 million. 
B) $8.25 million. 
C) $12 million. 
D) None of the above is correct.

Question 17

Required:
Compute depreciation for 2013 and 2014 and the book value of the spooler at December 31, 2013 and 2014, assuming the straight-line method is used.

Accepted Answer

The answer of Required:
Compute depreciation for 2013 and 2014 and...

Question 18

An asset should be written down if there has been an impairment of value that is:

Accepted Answer

A) Relevant and objectively determined. 
B) Material and market driven. 
C) Unplanned and sudden. 
D) Significant. 
A) Relevant and objectively determined. 
B) Material and market driven. 
C) Unplanned and sudden. 
D) Significant.

Question 19

Using the straight-line method, depreciation for 2014 and the equipment's book value at December 31, 2014, 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 20

Accounting for impairment losses:

Accepted Answer

A) Involves a two-step process for recoverability and measurement. 
B) Applies only to depreciable assets. 
C) Applies only to assets with finite lives. 
D) All of the above are correct. 
A) Involves a two-step process for recoverability and measurement. 
B) Applies only to depreciable assets. 
C) Applies only to assets with finite lives. 
D) All of the above are correct.

Using the sum-of-the years'-digits method, depreciation for 2014 and book value at December 31, 2014, would be

Using the double-declining balance method, depreciation for 2013 and book value at December 31, 2013, would be:

Entry to record the impairment loss:

Using the straight-line method, depreciation for 2014 and book value at December 31, 2014, would be:

In testing for recoverability of property, plant, and equipment, an impairment loss is required if the:

Required: Compute depreciation for 2013 and 2014 and the book value of the drill press at December 31, 2013 and 2014, assuming the straight-line method is used.

Using the sum-of-the-years'-digits method, depreciation for 2013 and book value at December 31, 2013, would be:

According to International Financial Reporting Standards, the impairment loss for property, plant, and equipment is the difference between book value and:

Short Corporation purchased Hathaway, Inc., for $52,000,000. The fair value of all Hathaway's identifiable tangible and intangible assets was $48,000,000. Short will amortize any goodwill over the maximum number of years allowed. What is the annual amortization of goodwill for this acquisition?

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

According to International Financial Reporting Standards, biological assets are valued at:

Required: Compute depreciation for 2013 and 2014 and the book value of the drill press at December 31, 2013 and 2014, assuming the units-of-production method is used.

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

International Financial Reporting Standards require goodwill to be tested for impairment at least annually.

Asset C3PO has a depreciable base of $16.5 million and a service life of 10 years. What would the accumulated depreciation be at the end of year five under the sum-of-the-years' digits method?

Required: Compute depreciation for 2013 and 2014 and the book value of the spooler at December 31, 2013 and 2014, assuming the straight-line method is used.

An asset should be written down if there has been an impairment of value that is:

Using the straight-line method, depreciation for 2014 and the equipment's book value at December 31, 2014, would be:

Accounting for impairment losses:

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 and Profitability Analysis

Time Value of Money Concepts

Cash and Receivables

Inventories: Measurement

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

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 Key

Share-Based Compensation and Earnings Per Share

Accounting Changes and Error Corrections

The Statement of Cash Flows Revisited

Filters

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

Using the sum-of-the years'-digits method, depreciation for 2014 and book value at December 31, 2014, would be

Using the double-declining balance method, depreciation for 2013 and book value at December 31, 2013, would be:

Entry to record the impairment loss:

Using the straight-line method, depreciation for 2014 and book value at December 31, 2014, would be:

In testing for recoverability of property, plant, and equipment, an impairment loss is required if the:

Required: Compute depreciation for 2013 and 2014 and the book value of the drill press at December 31, 2013 and 2014, assuming the straight-line method is used.

Using the sum-of-the-years'-digits method, depreciation for 2013 and book value at December 31, 2013, would be:

According to International Financial Reporting Standards, the impairment loss for property, plant, and equipment is the difference between book value and:

Short Corporation purchased Hathaway, Inc., for $52,000,000. The fair value of all Hathaway's identifiable tangible and intangible assets was $48,000,000. Short will amortize any goodwill over the maximum number of years allowed. What is the annual amortization of goodwill for this acquisition?

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

According to International Financial Reporting Standards, biological assets are valued at:

Required: Compute depreciation for 2013 and 2014 and the book value of the drill press at December 31, 2013 and 2014, assuming the units-of-production method is used.

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

International Financial Reporting Standards require goodwill to be tested for impairment at least annually.

Asset C3PO has a depreciable base of $16.5 million and a service life of 10 years. What would the accumulated depreciation be at the end of year five under the sum-of-the-years' digits method?

Required: Compute depreciation for 2013 and 2014 and the book value of the spooler at December 31, 2013 and 2014, assuming the straight-line method is used.

An asset should be written down if there has been an impairment of value that is:

Using the straight-line method, depreciation for 2014 and the equipment's book value at December 31, 2014, would be:

Accounting for impairment losses:

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 and Profitability Analysis

Time Value of Money Concepts

Cash and Receivables

Inventories: Measurement

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

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 Key

Share-Based Compensation and Earnings Per Share

Accounting Changes and Error Corrections

The Statement of Cash Flows Revisited

Filters