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Plant Assets And Depreciation Chap 10

Question 1 of 3

Q1 . Which of the following assets does not decline in service potential over the course of its useful life?

Q2 . Depreciation is a process of:

Q3 . Wesley Hospital installs a new parking lot. The paving cost $30,000 and the lights to illuminate the new parking area cost $15,000. Which of the following statements is true with respect to these additions

Q4 . Erin Danielle Company purchased equipment and incurred the following costs. Cash price $24,000 Sales taxes 1,200 Insurance during transit 200 Installation and testing 400 Total costs $25,800 What amount should be recorded as the cost of the equipment?

Q5 . Lake Coffee Company reported net sales of $180,000, net income of $54,000, beginning total assets of $200,000, and ending total assets of $300,000. What was the company's asset turnover?

Q6 . The four subdivisions for plant assets are

Q7 . In exchanges of assets in which the exchange has commercial substance:

Q8 . Identify the item below where the terms are not related.

Q9 . Additions to plant assets are:

Q10 . Indicate which of the following statements is true

Q11 . Which of the following statements is false?

Q12 . Ann Torbert purchased a truck for $11,000 on January 1, 2013. The truck will have an estimated salvage value of $1,000 at the end of 5 years. Using the units-of-activity method, the balance in accumulated depreciation at December 31, 2014, can be computed by the following formula:

Q13 . When there is a change in estimated depreciation:

Q14 . Hull Company acquires land for $96,000 cash. Additional costs are as follows: Removal of shed $ 300 Filling and grading 1,500 Salvage value of lumber of shed 120 Broker commission 1,530 Paving of parking lot 10,000 Closing costs 560 Hull will record the acquisition cost of the land as

Q15 . Jefferson Company purchased a piece of equipment on January 1, 2014. The equipment cost $60,000 and has an estimated life of 8 years and a salvage value of $8,000. What was the depreciation expense for the asset for 2015 under the double-declining-balance method

Q16 . Gagner Clinic purchases land for $110,000 cash. The clinic assumes $1,500 in property taxes due on the land. The title and attorney fees totaled $1,000. The clinic has the land graded for $2,200. What amount does Gagner Clinic record as the cost for the land?

Q17 . Depletion is

Q18 . Land improvements should be depreciated over the useful life of the

Q19 . The cost of land does not include

Q20 . Schopenhauer Company exchanged an old machine, with a book value of $39,000 and a fair value of $35,000, and paid $10,000 cash for a similar new machine. The transaction has commercial substance. At what amount should the machine acquired in the exchange be recorded on Schopenhauer's books?

Q21 . If a plant asset is sold before it is fully depreciated,

Q22 . Mattox Company is building a new plant that will take three years to construct. The construction will be financed in part by funds borrowed during the construction period. There are significant architect fees, excavation fees, and building permit fees. Which of the following statements is true?

Q23 . Martha Beyerlein Company incurred $150,000 of research and development costs in its laboratory to develop a patent granted on January 2, 2014. On July 31, 2014, Beyerlein paid $35,000 for legal fees in a successful defense of the patent. The total amount debited to Patents through July 31, 2014, should be:

Q24 . Able Towing Company purchased a tow truck for $60,000 on January 1, 2012. It was originally depreciated on a straight-line basis over 10 years with an assumed salvage value of $12,000. On December 31, 2014, before adjusting entries had been made, the company decided to change the remaining estimated life to 4 years (including 2014) and the salvage value to $2,000. What was the depreciation expense for 2014?

Q25 . Bennie Razor Company has decided to sell one of its old manufacturing machines on June 30, 2014. The machine was purchased for $80,000 on January 1, 2010, and was depreciated on a straight-line basis for 10 years assuming no salvage value. If the machine was sold for $26,000, what was the amount of the gain or loss recorded at the time of the sale?

Q26 . Micah Bartlett Company purchased equipment on January 1, 2013, at a total invoice cost of $400,000. The equipment has an estimated salvage value of $10,000 and an estimated useful life of 5 years. The amount of accumulated depreciation at December 31, 2014, if the straight-line method of depreciation is used, is

Q27 . Maggie Sharrer Company expects to extract 20 million tons of coal from a mine that cost $12 million. If no salvage value is expected and 2 million tons are mined and sold in the first year, the entry to record depletion will include a:

Q28 . Carey Company buys land for $50,000 on 12/31/10. As of 3/31/11, the land has appreciated in value to $50,700. On 12/31/11, the land has an appraised value of $51,800. By what amount should the Land account be increased in 2011?

Q29 . A patent