Exam 8: Long-Term Assets

In computing depletion expense, residual value is not part of the computation.

A truck that cost $44,000 and had accumulated depreciation of $38,000 was traded in for a new truck with a fair market value of $58,000. The old truck and $50,000 cash were given for the new truck. What is the journal entry to record this exchange of assets?

Ariana Corporation purchases land for $175,000 by signing a note payable. They paid cash as follows: $3,500 in realtor commission, $1,200 in transfer fees, a $1,700 survey fee, $3,200 to have the land graded and levelled, $6,300 for the installation of a fence, and $2,300 for a sprinkler system.. Prepare the journal entry required.

Replacing the engine of a 3-year-old vehicle would be an example of a(n):

Suppose goodwill that is carried on the balance sheet at its original value of $120,000 is valued at year end at $70,000. What is the journal entry required to record this?

Isaiah Industries reported the following costs for land and land improvements: Calculate the cost of the land showing details of what is included in the calculation.

The Toronto Blue Jays is an example of a:

Malinda Enterprises purchases land for $245,000 by signing a note payable for the same amount. The company also pays for the following: $2,500 in realtor commission, $6,400 to remove an old building, $3,300 to have the land fenced, and $2,700 for outdoor lighting. They also purchased machinery for $40,000 cash. Prepare the journal entry required.

Under IFRS, at what value is investment property recorded on the balance sheet after acquisition?

A truck costing $56,000 has accumulated depreciation of $50,000. The truck is scrapped for $0. What is the journal entry to record this transaction?

A patent has amortization this year of $2,300. What is the journal entry to record the amortization?

Which of the following would be included in the cost of a constructed building?

Journalize the following transactions: Feb 21 Purchased machinery for $4,500 on account. Feb 23 Paid the shipping company $400 to get the machinery delivered. Aug 1 Paid for the outstanding invoice from February 21. Dec 31 Recorded depreciation on the machinery assuming the company uses the units of production method, estimates total production to be 100,000 units, and has produced 12,000 units this year. Dec 31 Paid $300 for minor repairs on the machine.

Which of the following accounts would be something credited "as something you gave up" in a journal entry for an asset exchange?

Long-term assets usually begin with the listing of natural resources first.

Which of the following would be considered a natural resource?

Michele Company purchased a piece of equipment for $65,000 with an estimated residual value of $15,000 on January 1, 2012. Its estimated life is 5 years. To the nearest dollar, what is the equipment's depreciation using the double-declining-balance method for 2013?

Disposal of a plant asset occurs after the asset has been fully depreciated.

Which of the following is NOT a classification for marketable securities?

Real estate for resale or investments in equity securities held for less than one year would be considered other long-term assets.