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Exam 16: Accounting for Property, Plant, Equipment, and Intangible Assets

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Question 61

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The portion of an intangible asset's cost that is recognized as an expense is ________.

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Question 62

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When selling a plant asset, the gain was not recorded, but pocketed. This error would cause:

A) the period's net income to be understated.
B) the period's net income to be overstated.
C) the period end assets to be overstated.
D) None of these are correct.

E) A) and B)
F) All of the above

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Question 63

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A computer server system, which had cost $210,000 and had accumulated depreciation of $147,000, was traded for a new system with a fair market value of $235,000. The old system and cash of $180,000 were given for the new system. Prepare the journal entry for the exchange of these similar assets assuming the income tax method is used to record the exchange.

A company expanded its manufacturing facility by adding an additional 15,000 square feet to the building. This is an example of a(n) :

Under MACRS, furniture is depreciated over five years.

For tax purposes, ________ establishes the guidelines and the percentages for depreciation.

A company incorrectly records revenue expenditures as capital expenditures on its books. As a result, which of the following will be true?

Assembly costs, and any other costs necessary to get a machine ready for operation, except for freight costs, would be added to the cost of the machine.

Copyright protection expires upon the author's death.

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). -

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). -

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). -

Rockwell Industries purchased a plant asset to be used in its business. The expenditures included: The Machine account will be debited for ________.

The allocation of the cost of a natural resource is:

Intellectual property assets are:

The difference between the item's cost and accumulated depreciation is the ________.

The credit portion of the adjustment for the depletion of a coal mine was credited to the Coal Mine account. This error would cause:

Journalize the following transactions for PetsRUs:

What would be the depreciation expense in year 1, using units-of-production, for a molding machine that cost $18,000, had a useful life of 3 years, no residual value, and an estimated total machine hours of 36,000? Production in year 1 was 10,000 hours.

The intangible that can have the longest life before renewal is a ________.