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

The entry to record the payment of an extraordinary repair of $5,000 that will extend the life of the machine 5 years, when the machine cost $32,000, and has accumulated depreciation of $28,000, is to:

Ben's Supreme purchased new baking equipment for $19,000 subject to terms 3/15, n/45. The discount was taken. Additional costs included sales tax $500 and installation $400. The total cost to be added to the equipment account is:

The amount to include in the entry to record the cost of a property, plant, and equipment asset would NOT 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). -

The portion of a natural resource cost that is recognized as an expense is ________.

If an asset is being sold or exchanged, the gain or loss is always computed by comparing the:

Which of the following is a non-depreciable asset?

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

Some of the past depreciation is canceled in recording an extraordinary repair.

R.J. Berkshire incurred the following expenditures to buy new equipment: Discount taken The amount the Equipment account will be debited for is ________.

The entry to record the disposal of a laptop computer with a cost of $3,000 and an accumulated depreciation of $2,500 would be:

A company purchased a new delivery van on January 1, 2012 for $25,000. The company expects to use the van for 5 years and then sell it for $5,000. Complete the following depreciation table assuming straight-line depreciation:

A company installed a new engine in their delivery vehicle. This is an example of a(n):

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). -

A tractor costing $160,000 is depreciated using MACRS. The tractor qualifies as a 3-year property, and has a scrap value of $19,000. The depreciation rates are: What is the depreciation expense for year 3?

Assets that are expected to provide benefits for a number of accounting periods are called:

A loss on the sale of a plant asset is listed as:

The intangible that is recorded when a business is purchased for more than the fair value of the net assets is known as ________.

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