Question 1

Which of the following is included in the cost of a plant asset?

Accepted Answer

A) amounts paid to make the asset ready for its intended use 
B) regular repair and maintenance costs 
C) replacement of damaged parts of the asset 
D) wages of workers who work use the asset in normal operations 
A) amounts paid to make the asset ready for its intended use 
B) regular repair and maintenance costs 
C) replacement of damaged parts of the asset 
D) wages of workers who work use the asset in normal operations

Question 2

Briyanne,Inc.purchased a computer for $5,000.During 2016 and 2017,the company recorded total depreciation of $4,000 on the computer.On January 1,2018,the company exchanges the computer for a new one,paying $4,000 cash.The market value of the new computer is $6,000.Prepare the journal entry to record this transaction.Assume the exchange has commercial substance.

Accepted Answer

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Explanation:
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Question 3

Which of the following items should be amortized?

Accepted Answer

A) natural resources 
B) goodwill 
C) patents,copyrights,trademarks 
D) tangible property,plant,and equipment,other than land 
A) natural resources 
B) goodwill 
C) patents,copyrights,trademarks 
D) tangible property,plant,and equipment,other than land

Question 4

Prepare the journal entry to record the acquisition of a plant asset for $5,000 cash.

Accepted Answer

The answer of Prepare the journal entry to record the...

Question 5

A company purchased a computer on July 1,2017 for $50,000.Estimated useful life of the computer was five years,and it has no residual value.Which of the following methods should be used to best match its expense against the revenue it produces?

Accepted Answer

A) the units-of-production method 
B) the straight-line method 
C) the double-declining-balance method 
D) the first-in,first-out method 
A) the units-of-production method 
B) the straight-line method 
C) the double-declining-balance method 
D) the first-in,first-out method

Question 6

Equipment was acquired for $256,000 and has accumulated depreciation of $187,000.The business exchanges this equipment for new equipment.The new equipment has a market value of $208,000 and the business pays $159,000 cash.Assume the exchange has commercial substance.The exchange results in ________.

Accepted Answer

A) loss $20,000 
B) gain $20,000 
C) gain $139,000 
D) loss $139,000 
A) loss $20,000 
B) gain $20,000 
C) gain $139,000 
D) loss $139,000

Question 7

Equipment was acquired for $208,000 and has accumulated depreciation of $94,000.The business exchanges this equipment for new equipment.The new equipment has a market value of $310,000 and the business pays $60,000 cash.Assume the exchange has commercial substance.The exchange results in ________.

Accepted Answer

A) loss $136,000 
B) gain $196,000 
C) gain $136,000 
D) loss $196,000 
A) loss $136,000 
B) gain $196,000 
C) gain $136,000 
D) loss $196,000

Question 8

Capitalizing a cost involves crediting the asset account.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following costs related to a business car would be capitalized?

Accepted Answer

A) the cost to install an engine with higher horsepower 
B) the cost to change the oil 
C) the cost to replace a broken windshield 
D) the cost of new tires 
A) the cost to install an engine with higher horsepower 
B) the cost to change the oil 
C) the cost to replace a broken windshield 
D) the cost of new tires

Question 10

Which of the following accounting methods is generally used to compute amortization expense?

Accepted Answer

A) declining-balance 
B) units-of-production 
C) straight-line 
D) first-in,first-out 
A) declining-balance 
B) units-of-production 
C) straight-line 
D) first-in,first-out

Question 11

Businesses record goodwill ________.

Accepted Answer

A) when they enjoy an outstanding reputation and loyalty with customers 
B) if they acquire another company at an amount higher than the market value of its net assets 
C) when they continue the business of an acquired corporation 
D) if their market value has increased significantly in the recent years 
A) when they enjoy an outstanding reputation and loyalty with customers 
B) if they acquire another company at an amount higher than the market value of its net assets 
C) when they continue the business of an acquired corporation 
D) if their market value has increased significantly in the recent years

Question 12

If a business changes the estimated useful life,or estimated residual value,of a plant asset,depreciation expense must be recalculated.

Accepted Answer

A) True 
 B)False

Question 13

Hawkeye Corporation has acquired a property that included both land and a building for $560,000.The corporation hired an appraiser who has determined that the market value of the land is $370,000 and that of the building is $400,000.At what amount should the corporation record the cost of land? (Round any intermediate calculations to two decimal places,and your final answer to the nearest dollar. )

Accepted Answer

A) $408,800 
B) $177,600 
C) $280,000 
D) $268,800 
A) $408,800 
B) $177,600 
C) $280,000 
D) $268,800

Question 14

Brookside Market recently traded in store fixtures.The exchange had commercial substance.The old fixtures had a cost of $72,000 and accumulated depreciation of $59,000.Brookside paid $99,000 for the new store fixtures.These new fixtures had a market value of $134,000.There is a loss of $22,000 on this exchange.

Accepted Answer

A) True 
 B)False

Question 15

Steel Rolling Corp.purchased a mine,which holds an estimated 39,000 tons of iron ore,on January 1,2017,for $522,000.The mine is expected to have zero residual value.The business extracted and sold 17,500 tons of ore in 2017 and 15,800 tons of ore in 2018.What is the depletion expense for 2017? (Round any intermediate calculations to two decimal places,and your final answer to the nearest dollar. )

Accepted Answer

A) $211,404 
B) $234,150 
C) $172,404 
D) $287,670 
A) $211,404 
B) $234,150 
C) $172,404 
D) $287,670

Question 16

On June 30,2017,Regal Furniture discarded fully depreciated equipment with a cost $35,000 and no residual value.Prepare the journal entry for the disposal of the equipment.

Accepted Answer

The answer of On June 30,2017,Regal Furniture discarded fully depreciated...

Question 17

On January 1,2017,Zade Manufacturing Corporation purchased a machine for $40,900,000.Zade's management expects to use the machine for 27,000 hours over the next six years.The estimated residual value of the machine at the end of the sixth year is $47,000.The machine was used for 3,900 hours in 2017 and 5,400 hours in 2018.What is the depreciation expense for 2017 if the corporation uses the units-of-production method of depreciation? (Round any intermediate calculations to two decimal places,and your final answer to the nearest dollar. )

Accepted Answer

A) $5,900,973 
B) $13,633,333 
C) $8,170,578 
D) $5,907,759 
A) $5,900,973 
B) $13,633,333 
C) $8,170,578 
D) $5,907,759

Question 18

Estimated residual value can be zero if the company does not expect to receive anything when disposing of the asset.

Accepted Answer

A) True 
 B)False

Question 19

Jones Corp.purchased equipment for $45,000.Total depreciation of $36,000 was recorded.On January 1,2017,Jones exchanged the equipment for new equipment,paying $56,000 cash.The market value of the new equipment is $65,000.Prepare the journal entry to record this transaction.Assume the exchange has commercial substance.

Accepted Answer

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Explanation:
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Question 20

The cost of an asset is $1,200,000,and its residual value is $100,000.Estimated useful life of the asset is five years.Calculate depreciation for the second year using the double-declining-balance method of depreciation.(Do not round any intermediate calculations,and round your final answer to the nearest dollar. )

Accepted Answer

A) $240,000 
B) $220,000 
C) $440,000 
D) $288,000 
A) $240,000 
B) $220,000 
C) $440,000 
D) $288,000

Which of the following is included in the cost of a plant asset?

Which of the following items should be amortized?

Prepare the journal entry to record the acquisition of a plant asset for $5,000 cash.

A company purchased a computer on July 1,2017 for $50,000.Estimated useful life of the computer was five years,and it has no residual value.Which of the following methods should be used to best match its expense against the revenue it produces?

Equipment was acquired for $256,000 and has accumulated depreciation of $187,000.The business exchanges this equipment for new equipment.The new equipment has a market value of $208,000 and the business pays $159,000 cash.Assume the exchange has commercial substance.The exchange results in ________.

Equipment was acquired for $208,000 and has accumulated depreciation of $94,000.The business exchanges this equipment for new equipment.The new equipment has a market value of $310,000 and the business pays $60,000 cash.Assume the exchange has commercial substance.The exchange results in ________.

Capitalizing a cost involves crediting the asset account.

Which of the following costs related to a business car would be capitalized?

Which of the following accounting methods is generally used to compute amortization expense?

Businesses record goodwill ________.

If a business changes the estimated useful life,or estimated residual value,of a plant asset,depreciation expense must be recalculated.

On June 30,2017,Regal Furniture discarded fully depreciated equipment with a cost $35,000 and no residual value.Prepare the journal entry for the disposal of the equipment.

Estimated residual value can be zero if the company does not expect to receive anything when disposing of the asset.

Accounting and the Business Environment

Recording Business Transactions

The Adjusting Process

Completing the Accounting Cycle

Merchandising Operations

Merchandise Inventory

Accounting Information Systems

Internal Control and Cash

Receivables

Current Liabilities and Payroll

Partnerships

Corporations

Long-Term Liabilities

Investments

The Statement of Cash Flows

Financial Statement Analysis

Introduction to Managerial Accounting

Job Order Costing

Process Costing

Cost-Volume-Profit Analysis

Master Budgets

Flexible Budgets and Standard Cost Systems

Cost Allocation and Responsibility Accounting

Short-Term Business Decisions

Capital Investment Decisions

Filters

Exam 10: Plant Assets, natural Resources, and Intangibles

Which of the following is included in the cost of a plant asset?

Which of the following items should be amortized?

Prepare the journal entry to record the acquisition of a plant asset for $5,000 cash.

A company purchased a computer on July 1,2017 for $50,000.Estimated useful life of the computer was five years,and it has no residual value.Which of the following methods should be used to best match its expense against the revenue it produces?

Equipment was acquired for $208,000 and has accumulated depreciation of $94,000.The business exchanges this equipment for new equipment.The new equipment has a market value of $310,000 and the business pays $60,000 cash.Assume the exchange has commercial substance.The exchange results in ________.

Capitalizing a cost involves crediting the asset account.

Which of the following costs related to a business car would be capitalized?

Which of the following accounting methods is generally used to compute amortization expense?

Businesses record goodwill ________.

If a business changes the estimated useful life,or estimated residual value,of a plant asset,depreciation expense must be recalculated.

On June 30,2017,Regal Furniture discarded fully depreciated equipment with a cost $35,000 and no residual value.Prepare the journal entry for the disposal of the equipment.

Estimated residual value can be zero if the company does not expect to receive anything when disposing of the asset.

Accounting and the Business Environment

Recording Business Transactions

The Adjusting Process

Completing the Accounting Cycle

Merchandising Operations

Merchandise Inventory

Accounting Information Systems

Internal Control and Cash

Receivables

Current Liabilities and Payroll

Partnerships

Corporations

Long-Term Liabilities

Investments

The Statement of Cash Flows

Financial Statement Analysis

Introduction to Managerial Accounting

Job Order Costing

Process Costing

Cost-Volume-Profit Analysis

Master Budgets

Flexible Budgets and Standard Cost Systems

Cost Allocation and Responsibility Accounting

Short-Term Business Decisions

Capital Investment Decisions

Filters