Question 1

The depreciation method(s) in which an even amount of depreciation expense is taken each year is (are) called:

Accepted Answer

A)  straight-line method.
B)  double declining-balance method.
C)  units-of-production method.
D)  All of the above.

Question 2

Jason Moore purchased computer equipment for $2,800 on January 1,2012.It has a residual value of $400 with a useful life of 4 years.After the appropriate adjusting entries have been made,the balance in Accumulated Depreciation account for this asset on January 1,2014,under the straight-line method,should be:

Accepted Answer

A)  $1,200.
B)  $600.
C)  $700.
D)  $1,400.

Question 3

What is the difference between an extraordinary repair and a betterment?

Accepted Answer

A)  A betterment extends the life of the asset; an extraordinary repair does not.
B)  An extraordinary repair is a capital expenditure; a betterment is not.
C)  An extraordinary repair may extend the life of the asset; a betterment does not.
D)  None of these answers are correct.

Question 4

For each of the following, identify in column 1 the category to which the account belongs, in column 2 the normal balance for the account, in column 3 the financial statement that the account in which the account balance is reported, and in column 4 the account's nature (permanent/temporary).
-$\begin{array} { | l | l | l | l | l | } 
\hline & \text { Column 1 } & \text { Column 2 } & \text { Column 3 } & \text { Column 4 } \
\hline \text { Patent } & & & & \
\hline
\end{array}$

Accepted Answer

The answer of For each of the following, identify in...

Question 5

Assume an asset costing $72,000 is expected to produce 400,000 units and have a salvage value of $6,000.During year 1,75,000 units were produced; during year 2,68,000 units were produced; and during year 3,70,000 units were produced.Using units-of-production,compute the depreciation expense for each of the three years.

Accepted Answer

Year 1: $12,375 (72000 - 6000)...

Question 6

Rockwell Industries purchased a plant asset to be used in its business.The expenditures included:
 $\begin{array}{ll}
\text { Cost of machine } & \$ 8,000 \
\text { Special concrete base to support machine } & 500 \
\text { Freight charges } & 1,000 \
\text { Repair cost of damage incurred during installation } & 300
\end{array}$
 The Machine account will be debited for ________.

Accepted Answer

$9,500 ($8...

Question 7

Which of the following assets would not be classified as property,plant,and equipment?

Accepted Answer

A)  Delivery truck
B)  Copyright
C)  Land
D)  Furniture

Exam 16: Accounting for Property, plant, equipment, and Intangible Assets

Correct Answer
verified
Year 1: $12,375 (72000 - 6000)...
View Answer

Correct Answer
verified
$9,500 ($8...
View Answer

What is the difference between an extraordinary repair and a betterment?

Correct Answer
verified

The depreciation method(s) in which an even amount of depreciation expense is taken each year is (are) called:

Correct Answer
verified

Which of the following assets would not be classified as property,plant,and equipment?

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Exam 16: Accounting for Property, plant, equipment, and Intangible Assets

Correct AnswerverifiedYear 1: $12,375 (72000 - 6000)...View AnswerShow Answer

Correct Answerverified$9,500 ($8...View AnswerShow Answer

What is the difference between an extraordinary repair and a betterment?

Correct AnswerverifiedShow Answer

The depreciation method(s) in which an even amount of depreciation expense is taken each year is (are) called:

Correct AnswerverifiedShow Answer

Which of the following assets would not be classified as property,plant,and equipment?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct Answer
verified
Year 1: $12,375 (72000 - 6000)...
View Answer

Correct Answer
verified
$9,500 ($8...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified