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

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

Mount Company purchased a machine at an invoice cost of $25,000 subject to terms of 2/10,n/30.The discount was taken.Additional costs were installation,$1000;insurance on the machine after it was in operation,$500.The total cost to be added to the machinery account is:

Tangible assets include:

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). - Column 1 Column 2 Column 3 Column 4 Loss on disposal of plant asset

Salvage value was ignored when originally calculating the units-of-production depreciation.This error would cause:

Accumulated depreciation is a contra ________ and is reported on the ________ ________.

Net income is not affected by the depreciation method used.