Exam 10: Plant Assets, natural Resources, and Intangibles

Cardoza Corp.purchased a mine on January 1,2016,for $513,000,which is estimated to contain 30,000 tons of iron ore.There is no residual value.The business extracted and sold 12,500 tons of ore in 2016 and 16,800 tons of ore in 2017.What is the depletion expense for 2017?(Round any intermediate calculations to two decimal places,and your final answer to the nearest dollar. )

A truck costs $320,000 and is expected to be driven 116,000 miles during its five-year life.Residual value is expected to be zero.If the truck is driven 29,000 miles during the first year,how much depreciation should the business record under the units-of-production method? (Round any intermediate calculations to two decimal places,and your final answer to the nearest dollar. )

The useful life of a plant asset is the length of the service period expected from the asset.

Server Solutions paid $211,000 to acquire Tabletz,Inc. ,an electronic gadget-advertising website.At the time of the acquisition,Tabletz's balance sheet reported total assets of $211,000 and liabilities of $105,500.The fair market value of Tabletz's assets was $211,000.The fair market value of its liabilities was $105,500.How much goodwill did Server Solutions purchase as part of the acquisition of Tabletz?

Land and land improvements are one and the same and therefore must be recorded in single account.

Hastings Corporation has purchased a group of assets for $21,900.The assets and their relative market values are listed below. Which of the following amounts would be debited to the Land account? (Round any intermediate calculations to two decimal places,and your final answer to the nearest dollar. )

Caterpillars,Inc. ,a manufacturing company,acquired equipment on January 1,2014 for $530,000.Estimated useful life of the equipment was seven years and the estimated residual value was $13,000.On January 1,2017,after using the equipment for three years,the total estimated useful life has been revised to nine total years.Residual value remains unchanged.The company uses the straight-line method of depreciation.Calculate depreciation expense for 2017.(Round any intermediate calculations to two decimal places,and your final answer to the nearest dollar. )

Which of the following is an asset that represents distinctive identifications of a product or service?

An asset is considered to be obsolete when a newer asset can perform the job more efficiently.

IFRS permits the presentation of plant assets at their fair market value because ________.

An intangible asset is an asset with no physical form that is valuable because of the special rights it carries.

The gain or loss on the sale of a plant asset is determined by comparing market value of assets received with ________.

On January 1,2016,WAX-D purchased equipment for $60,000 cash,expecting it to remain in service for six years.The equipment is depreciated using the straight-line method with $2,000 estimated residual value.On April 30,2018,the equipment was sold for $48,000 cash.Record depreciation expense for 2018 and the sale of the equipment on April 30,2018.(Do not round your intermediate calculations. )

Adams Bakery uses the modified half month convention to calculate depreciation expense in the year an asset is purchased or sold.Adams has a calendar year accounting period and uses the straight-line method to compute depreciation expense.On March 17,2016,Adams acquired equipment at a cost of $130,000.The equipment has a residual value of $44,000 and an estimated useful life of 6 years.What amount of depreciation expense will be recorded for the year ending December 31,2016? (Round any intermediate calculations to two decimal places,and your final answer to the nearest dollar. )

Dark Room Corp.purchased equipment for $45,000.Total depreciation of $36,000 was recorded.On January 1,2017,Dark Room exchanged the equipment for new equipment,paying $65,000 cash.The market value of the new equipment is $65,000.Prepare the journal entry to record this transaction.Assume the exchange had commercial substance.

On January 1,2017,Anodel,Inc.acquired a machine for $1,080,000.The estimated useful life of the asset is five years.Residual value at the end of five years is estimated to be $56,000.Calculate the depreciation expense per year using the straight-line method.

On June 30,2016,Colora Printers purchased a printer for $59,000.It expects the printer to last for four years and have a residual value of $8,000.Compute the depreciation expense on the printer for the year ended December 31,2016,using the straight-line method.(Round any intermediate calculations to two decimal places,and your final answer to the nearest dollar. )

On January 1,2016,a corporation acquired a truck for $100,000.Residual value was estimated to be $20,000.The truck can be driven for 50,000 miles over the next three years.Actual usage of the truck was recorded as 8,640 miles for the first year.Give the journal entry to record depreciation for the first year calculated as per the units-of-production method.(Do not round your intermediate calculations. )

An asset was purchased for $36,000 on January 1,2016.The asset's estimated useful life was five years,and its residual value was $4,000.The straight-line method of depreciation was used.Calculate the gain or loss if the asset is sold for $18,000 on December 31,2016,the last day of the accounting period.

On January 1,2017,Doyle Manufacturing Corporation purchased a machine for $40,000,000.The corporation expects to use the machine for 24,000 hours over the next six years.The estimated residual value of the machine at the end of the sixth year is $40,000.The corporation used the machine for 3,600 hours in 2017 and 5,000 hours in 2018.Calculate depreciation expense for 2018 if the company uses the units-of-production method of depreciation.