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

Capital expenditures would include:

Straight-line method is used in the first year when double declining-balance should be used. This error would cause:

If a coal deposit has 700,000 tons available and was purchased for $1,400,000, record the removal of 50,000 tons in year 1 and 70,000 tons in year 2.

Which of the following is an example of an intangible 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). -

The depreciation method that does not base the expense on the passage of time but on the level of use is:

A piece of equipment is purchased for $78,000 on January 1. It has a 5-year life and a salvage value of $8,000. Compute the annual depreciation expense using the double declining-balance method for all 5 years.

The three categories of writing off plant assets, natural resources, and intangible assets are ________, ________, and ________, respectively.

A loss on the sale of an asset would occur when:

Double declining-balance depreciation is used in the first year when straight-line depreciation should be used. This error would cause:

If an asset is exchanged for a similar asset, a gain results:

An exclusive right to the owner to sell or produce his or her discovery or invention is known as a:

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 book value of an asset is calculated by taking the:

The write-off of an intangible asset is called:

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). -

In the last year of useful life, the salvage value was ignored using double declining-balance depreciation. This error would cause:

What would be the depreciation expense in year 1, using units-of-production, for a molding machine that cost $15,000, had a useful life of 6 years, no residual value, and an estimated total machine hours of 50,000? Production in year 1 was 8,000 hours. (Round any intermediate calculations to two decimal places, and your final answer to the nearest dollar.)

Tender Years purchased a new van on January 1, 201X, for $60,000. The life of the van is 5 years or 100,000 miles, with an estimated residual value of $5,000. During the first year, the van was driven 22,000 miles. Compute the depreciation expense for the first year applying each of the methods below. a) ________ Straight-line b) ________ Units-of-production c) ________ Double declining-balance

Which of the following is NOT an example of a land improvement?