Question 1

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 revenuesE) All of the above
F) None of the above

Question 2

Determine the depreciation for the year of acquisition and for the following year of a fixed asset acquired on October 1 for $500,000 with an estimated life of five years,and residual value of $50,000,using 
(a)the double-declining-balance method and 
(b)the straight-line method.Assume a fiscal year ending December 31.

Accepted Answer

The answer of Determine the depreciation for the year of...

Question 3

A building with an appraisal value of $154,000 is made available at an offer price of $172,000.The purchaser acquires the property for $40,000 in cash,a 90-day note payable for $45,000,and a mortgage amounting to $75,000.The cost basis recorded in the buyer's accounting records to recognize this purchase is

Accepted Answer

A)  $154,000
B)  $172,000
C)  $160,000
D)  $120,000E) C) and D)
F) A) and B)

Question 4

A machine with a cost of $75,000 has an estimated residual value of $5,000 and an estimated life of four 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)  $16,667E) B) and C)
F) None of the above

Question 5

Match each account name to the financial statement section (a-i)  in which it would appear.
-Gain on Sale of Equipment

Accepted Answer

A)  Current assets
B)  Fixed assets
C)  Intangible assets
D)  Current liability
E)  Long-term liabilityF) Owner's equityG) RevenuesH) Operating expensesI) Other revenue and expenseJ) B) and G)
K) B) and E)

Question 6

Classify each of the following as:
-Adding refrigerant to an air conditioning system

Accepted Answer

A)  Ordinary maintenance and repairs
B)  Asset improvements
C)  Extraordinary repairsD) All of the above
E) None of the above

Question 7

On December 31,Strike Company sold one of its batting cages for $55,000.The equipment had an initial cost of $310,000 and has accumulated depreciation of $260,000.Depreciation has been taken up to the end of the year.What is the amount of the gain or loss on this transaction?

Accepted Answer

A)  loss of $55,000
B)  loss of $5,000
C)  gain of $5,000
D)  gain of $55,000E) All of the above
F) A) and B)

Question 8

A new machine with a purchase price of $109,000,with transportation costs of $12,000,installation costs of $5,000,and special acquisition fees of $6,000,would have a cost basis of

Accepted Answer

A)  $114,000
B)  $126,000
C)  $121,000
D)  $132,000E) A) and B)
F) A) and C)

Question 9

Expenditures for research and development are generally recorded as

Accepted Answer

A)  current operating expenses
B)  assets and amortized over their estimated useful life
C)  assets and amortized over 40 years
D)  current assetsE) A) and B)
F) A) and C)

Question 10

Machinery was purchased on January 1 for $51,000.The machinery has an estimated life of seven years and an estimated salvage value of $9,000.Double-declining-balance depreciation for the second year would be (round calculations to the nearest dollar) :

Accepted Answer

A)  $10,929
B)  $6,000
C)  $10,500
D)  $10,408E) B) and C)
F) B) and D)

Question 11

Match the intangible assets described with their proper classification (a-d) .
​
-McDonald's golden arches

Accepted Answer

A)  Patent
B)  Copyright
C)  Trademark
D)  GoodwillE) B) and C)
F) All of the above

Question 12

A fixed asset with a cost of $30,000 and accumulated depreciation of $28,500 is sold for $3,500.What is the amount of the gain or loss on disposal of the fixed asset?

Accepted Answer

A)  $2,000 loss
B)  $1,500 loss
C)  $3,500 gain
D)  $2,000 gainE) A) and D)
F) None of the above

Question 13

Chasteen Company acquired mineral rights for $9,100,000.The mineral deposit is estimated at 65,000,000 tons.During the current year,18,375,000 tons were mined and sold.​Required

Accepted Answer

The answer of Chasteen Company acquired mineral rights for $9,100,000.The...

Question 14

When a company sells machinery at a price equal to its book value,this transaction would be recorded as a

Accepted Answer

A)  debit to Cash and Accumulated Depreciation and a credit to Machinery
B)  debit to Machinery and a credit to Cash and Accumulated Depreciation
C)  debit to Cash and Machinery and a credit to Accumulated Depreciation
D)  debit to Cash and Depreciation Expense and a credit to Accumulated DepreciationE) None of the above
F) A) and B)

Question 15

Residual value is not incorporated in the initial calculations for double-declining-balance depreciation.

Accepted Answer

A) True 
 B)False

Question 16

A machine with a cost of $120,000 has an estimated residual value of $15,000 and an estimated life of five years or 15,000 hours.It is to be depreciated by the units-of-activity method.What is the amount of depreciation for the second full year,during which the machine was used 5,000 hours?

Accepted Answer

A)  $5,000
B)  $35,000
C)  $21,000
D)  $45,000E) B) and D)
F) All of the above

Question 17

Equipment with a cost of $220,000 has an estimated residual value of $30,000 and an estimated life of 10 years or 19,000 hours.It is to be depreciated by the straight-line method.What is the amount of depreciation for the first full year,during which the equipment was used 2,100 hours?

Accepted Answer

A)  $19,000
B)  $21,000
C)  $22,000
D)  $30,000E) B) and C)
F) A) and D)

Question 18

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

Accepted Answer

A) True 
 B)False

Question 19

The difference between the balance in a fixed asset account and its related accumulated depreciation account is the asset's book value.

Accepted Answer

A) True 
 B)False

Question 20

Classify each of the following costs associated with long-lived assets as one of the following:
-Outdoor lighting at new business location

Accepted Answer

A)  Land improvements
B)  Buildings
C)  Land
D)  Machinery and equipmentE) A) and D)
F) B) and C)

Exam 10: Long-Term Assets: Fixed and Intangible

Match the intangible assets described with their proper classification (a-d) . -McDonald's golden arches

Correct Answer
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Residual value is not incorporated in the initial calculations for double-declining-balance depreciation.

Correct Answer
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Classify each of the following costs associated with long-lived assets as one of the following: -Outdoor lighting at new business location

Correct Answer
verified

When a company sells machinery at a price equal to its book value,this transaction would be recorded as a

Correct Answer
verified

Machinery was purchased on January 1 for $51,000.The machinery has an estimated life of seven years and an estimated salvage value of $9,000.Double-declining-balance depreciation for the second year would be (round calculations to the nearest dollar) :

Correct Answer
verified

A new machine with a purchase price of $109,000,with transportation costs of $12,000,installation costs of $5,000,and special acquisition fees of $6,000,would have a cost basis of

Correct Answer
verified

Correct Answer
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A machine with a cost of $120,000 has an estimated residual value of $15,000 and an estimated life of five years or 15,000 hours.It is to be depreciated by the units-of-activity method.What is the amount of depreciation for the second full year,during which the machine was used 5,000 hours?

Correct Answer
verified

Chasteen Company acquired mineral rights for $9,100,000.The mineral deposit is estimated at 65,000,000 tons.During the current year,18,375,000 tons were mined and sold.Required

Correct Answer
verified

Classify each of the following as: -Adding refrigerant to an air conditioning system

Correct Answer
verified

Expenditures for research and development are generally recorded as

Correct Answer
verified

The accumulated depletion of a natural resource is reported on the

Correct Answer
verified

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

Correct Answer
verified

On December 31,Strike Company sold one of its batting cages for $55,000.The equipment had an initial cost of $310,000 and has accumulated depreciation of $260,000.Depreciation has been taken up to the end of the year.What is the amount of the gain or loss on this transaction?

Correct Answer
verified

Match each account name to the financial statement section (a-i) in which it would appear. -Gain on Sale of Equipment

Correct Answer
verified

Equipment with a cost of $220,000 has an estimated residual value of $30,000 and an estimated life of 10 years or 19,000 hours.It is to be depreciated by the straight-line method.What is the amount of depreciation for the first full year,during which the equipment was used 2,100 hours?

Correct Answer
verified

The difference between the balance in a fixed asset account and its related accumulated depreciation account is the asset's book value.

Correct Answer
verified

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

Correct Answer
verified

A fixed asset with a cost of $30,000 and accumulated depreciation of $28,500 is sold for $3,500.What is the amount of the gain or loss on disposal of the fixed asset?

Correct Answer
verified

Correct Answer
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Exam 10: Long-Term Assets: Fixed and Intangible

Match the intangible assets described with their proper classification (a-d) . ​ -McDonald's golden arches

Correct AnswerverifiedShow Answer

Residual value is not incorporated in the initial calculations for double-declining-balance depreciation.

Correct AnswerverifiedShow Answer

Classify each of the following costs associated with long-lived assets as one of the following: -Outdoor lighting at new business location

Correct AnswerverifiedShow Answer

When a company sells machinery at a price equal to its book value,this transaction would be recorded as a

Correct AnswerverifiedShow Answer

Machinery was purchased on January 1 for $51,000.The machinery has an estimated life of seven years and an estimated salvage value of $9,000.Double-declining-balance depreciation for the second year would be (round calculations to the nearest dollar) :

Correct AnswerverifiedShow Answer

A new machine with a purchase price of $109,000,with transportation costs of $12,000,installation costs of $5,000,and special acquisition fees of $6,000,would have a cost basis of

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

A machine with a cost of $120,000 has an estimated residual value of $15,000 and an estimated life of five years or 15,000 hours.It is to be depreciated by the units-of-activity method.What is the amount of depreciation for the second full year,during which the machine was used 5,000 hours?

Correct AnswerverifiedShow Answer

Chasteen Company acquired mineral rights for $9,100,000.The mineral deposit is estimated at 65,000,000 tons.During the current year,18,375,000 tons were mined and sold.​Required

Correct AnswerverifiedShow Answer

Classify each of the following as: -Adding refrigerant to an air conditioning system

Correct AnswerverifiedShow Answer

Expenditures for research and development are generally recorded as

Correct AnswerverifiedShow Answer

The accumulated depletion of a natural resource is reported on the

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

On December 31,Strike Company sold one of its batting cages for $55,000.The equipment had an initial cost of $310,000 and has accumulated depreciation of $260,000.Depreciation has been taken up to the end of the year.What is the amount of the gain or loss on this transaction?

Correct AnswerverifiedShow Answer

Match each account name to the financial statement section (a-i) in which it would appear. -Gain on Sale of Equipment

Correct AnswerverifiedShow Answer

Equipment with a cost of $220,000 has an estimated residual value of $30,000 and an estimated life of 10 years or 19,000 hours.It is to be depreciated by the straight-line method.What is the amount of depreciation for the first full year,during which the equipment was used 2,100 hours?

Correct AnswerverifiedShow Answer

The difference between the balance in a fixed asset account and its related accumulated depreciation account is the asset's book value.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

A fixed asset with a cost of $30,000 and accumulated depreciation of $28,500 is sold for $3,500.What is the amount of the gain or loss on disposal of the fixed asset?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Match the intangible assets described with their proper classification (a-d) . -McDonald's golden arches

Correct Answer
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Chasteen Company acquired mineral rights for $9,100,000.The mineral deposit is estimated at 65,000,000 tons.During the current year,18,375,000 tons were mined and sold.Required

Correct Answer
verified

Correct Answer
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