FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 10: Plant Assets, Natural Resources, and Intangible Assets

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 91

Multiple Choice

Review LaterAdd Note

Review Later

All of the following intangible assets are amortized except

A) copyrights.
B) limited-life franchises.
C) patents.
D) trademarks.

E) C) and D)
F) B) and D)

Correct Answer

verified

Show Answer

Question 92

Multiple Choice

Review LaterAdd Note

Review Later

If a plant asset is sold before it is fully depreciated,

A) only a gain on disposal can occur.
B) only a loss on disposal can occur.
C) either a gain or a loss can occur.
D) neither a gain nor a loss can occur.

E) None of the above
F) C) and D)

Correct Answer

verified

Show Answer

Question 93

Short Answer

Review LaterAdd Note

The declining-balance method of computing depreciation is known as an _____________ depreciation method.

Which of the following is not an intangible asset arising from a government grant?

For each entry below make a correcting entry if necessary. If the entry given is correct, then state "No entry required." (a) The $60 cost of repairing a printer was charged to Computer Equipment. (b) The $5,000 cost of a major engine overhaul was debited to Repair Expense. The overhaul is expected to increase the operating efficiency of the truck. (c) The $6,000 closing costs associated with the acquisition of land were debited to Legal Expense. (d) A $500 charge for transportation expenses on new equipment purchased was debited to Freight-In.

To determine a new depreciation amount after a change in estimate of a plant asset's useful life, the asset's remaining depreciable cost is divided by its remaining useful life.

The Accumulated Depreciation account represents a cash fund available to replace plant assets.

When vacant land is acquired, expenditures for clearing, draining, filling, and grading should be charged to the ______________ account.

Once cost is established for a plant asset, it becomes the basis of accounting for the asset unless the asset appreciates in value, in which case, market value becomes the basis for accountability.

If a mining company extracts 1,500,000 tons in a period but only sells 1,200,000 tons,

Interest may be included in the acquisition cost of a plant asset

Sargent Corporation bought equipment on January 1, 2010. The equipment cost $90,000 and had an expected salvage value of $15,000. The life of the equipment was estimated to be 6 years. The depreciable cost of the equipment is

On October 1, 2010, Holt Company places a new asset into service. The cost of the asset is $60,000 with an estimated 5-year life and $15,000 salvage value at the end of its useful life. What is the book value of the plant asset on the December 31, 2010, balance sheet assuming that Holt Company uses the double-declining-balance method of depreciation?

Research and development costs should be charged to expense when incurred.

Enos Company has decided to change the estimate of the useful life of an asset that has been in service for 2 years. Which of the following statements describes the proper way to revise a useful life estimate?

When an entire business is purchased, goodwill is the excess of cost over the book value of the net assets acquired.

Additions and improvements are costs incurred to increase the operating efficiency, productive capacity, or expected useful life and are referred to as __________________.

The December 31, 2009 balance sheet of Cooper Company showed Equipment of $64,000 and Accumulated Depreciation of $18,000. On January 1, 2010, the company decided that the equipment has a remaining useful life of 6 years with a $4,000 salvage value. Instructions Compute the (a) depreciable cost of the equipment and (b) revised annual depreciation.

Farr Company purchased a new van for floral deliveries on January 1, 2010. The van cost $36,000 with an estimated life of 5 years and $9,000 salvage value at the end of its useful life. The double-declining-balance method of depreciation will be used. What is the balance of the Accumulated Depreciation account at the end of 2011?

In the case of an exchange of plant assets resulting in a loss on disposal, the cost of the new asset acquired is equal to the ______________ of the asset given up plus any cash paid by the purchaser.