FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 10: Property,plant and Equipment,and Intangibles

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 81

True/False

Review LaterAdd Note

Review Later

Goodwill is not depreciated or amortized but is instead decreased only if its value has been determined by management to be impaired .

Correct Answer

verified

Show Answer

Question 82

Multiple Choice

Review LaterAdd Note

Review Later

A machine originally had an estimated service life of 5 years,and after 3 years,it was decided that the original estimate should have been for 10 years.The remaining cost to be depreciated should be allocated over the next:

A) 2 years.
B) 5 years.
C) 6 years.
D) 7 years.
E) 10 years.

Correct Answer

verified

Show Answer

Question 83

Multiple Choice

Review LaterAdd Note

Legal permissions for the extraction of oil and gas from the earth are known as:

Impairment losses must be assessed by companies on an annual basis.

The straight-line method and the double-declining-balance method of depreciation:

RoboCop Company paid $31,400 for a machine that was expected to last 5 years and have a residual value of $5,000. During the third year of the machine's life,$3,700 was paid for replacement parts that were expected to increase the machine's productivity by 20% each year.Prepare the general journal entry to record this transaction.

Residual value is:

Capital cost allowance:

A new machine is expected to produce 40,000 units of product during its 5-year life.The machine cost $180,000 and is estimated to have a $20,000 residual value. If depreciation on the machine is calculated by the double-declining-balance method,what is the depreciation for the first year?

To be charged to and reported as part of the cost of property,plant and equipment,an expenditure must be normal,reasonable,and necessary in preparing the asset for its intended use.

Subsequent capital expenditures:

Property,plant and equipment can be disposed of by discarding,sale,or exchange of the asset.

Matador & Company was preparing the annual financial statements and,as part of its year-end procedures,prepared the following schedule based on adjusted values at March 31,2015: Record the entry for any impairment loss assuming that Matador & Company recorded no impairment losses in previous years.

SportsWorld purchased property for a building site.The costs associated with the property were: What portion of these costs should be allocated to the cost of the land and what portion should be allocated to the cost of the new building?

Depreciation should always be recorded as soon as an asset is purchased.

A leasehold:

On April 1,2015,Sagan Realty disposed of an automobile that had cost $50,000 on January 1,2013.The automobile had a residual value of $8,000,and a useful life of 5 years.The accounting records showed accumulated depreciation for this asset of $16,800 at December 31,2014.The asset was discarded after an accident,and $11,500 was received from an insurance claim. Prepare the journal entry to record the disposal of the automobile.

The three means for disposal of an asset include: ____________,____________,or ______________.

The relevant factor(s) in calculating depreciation is(are) :

Twin Investments purchased land with a building for a total cost of $5,500,000 ($500,000 paid in cash and the balance on a long-term note).The appraised cost of the land and building were $3,000,000 and $2,100,000,respectively.Calculate the costs to be allocated to the land and the building and prepare the appropriate journal entry to record the acquisition.(Round all calculations to two decimals)