Question 1

Classify each of the following as:
-New landscaping

Accepted Answer

A)  Ordinary maintenance and repairs
B)  Asset improvements
C)  Extraordinary repairsD) None of the above
E) A) and B)

Question 2

A copy machine acquired on May 1 with a cost of $2,545 has an estimated useful life of three years.Assuming that it will have a residual value of $445,determine the depreciation for the first and second year by the straight-line method.Round your answers to the nearest whole dollar.

Accepted Answer

Straight-Line Depreciation =
(Cost - Es...

Question 3

Match the intangible assets described with their proper classification (a-d) .
​
-Nike swoosh

Accepted Answer

A)  Patent
B)  Copyright
C)  Trademark
D)  GoodwillE) C) and D)
F) A) and D)

Question 4

Computer equipment was acquired at the beginning of the year at a cost of $57,000 that has an estimated residual value of $9,000 and an estimated useful life of five years.Determine the second-year depreciation using the straight-line method.

Accepted Answer

A)  $13,200
B)  $19,200
C)  $9,600
D)  $9,000E) All of the above
F) None of the above

Question 5

Match each account name to the financial statement section (a-i)  in which it would appear.
-Loss on Disposal of Asset

Accepted Answer

A)  Current assets
B)  Fixed assets
C)  Intangible assets
D)  Current liability
E)  Long-term liabilityF) Owner's equityG) RevenuesH) Operating expensesI) Other revenue and expenseJ) B) and I)
K) B) and F)

Question 6

Which of the following is true?

Accepted Answer

A)  If using the double-declining-balance method, the total amount of depreciation expense during the life of the asset will be the highest.
B)  If using the units-of-activity method, it is possible to depreciate more than the depreciable cost.
C)  If using the straight-line method, the amount of depreciation expense during the first year is higher than that of the double-declining-balance.
D)  Regardless of the depreciation method, the amount of total depreciation expense during the life of the asset will be the same.E) A) and B)
F) C) and D)

Question 7

When a company exchanges machinery and receives a trade-in allowance less than the book value,this transaction would be recorded with which of the following entries?

Accepted Answer

A)  debit Machinery and Accumulated Depreciation; credit Machinery and Cash
B)  debit Cash and Machinery; credit Accumulated Depreciation
C)  debit Cash and Machinery; credit Accumulated Depreciation and Machinery
D)  debit Machinery, Accumulated Depreciation, and Loss on Exchange of Machinery; credit Machinery and CashE) A) and B)
F) None of the above

Question 8

A gain can be realized when a fixed asset is discarded.

Accepted Answer

A) True 
 B)False

Question 9

Classify each of the following costs associated with long-lived assets as one of the following:
-Fences around land at new business location

Accepted Answer

A)  Land improvements
B)  Buildings
C)  Land
D)  Machinery and equipmentE) A) and D)
F) A) and B)

Question 10

Revising depreciation estimates affects the amounts of depreciation expense recorded in past periods.

Accepted Answer

A) True 
 B)False

Question 11

If a fixed asset with a book value of $10,000 is traded for a similar fixed asset,a trade-in allowance of $15,000 is granted by the seller,and the transaction is deemed to have commercial substance,the buyer would report a gain on exchange of fixed assets of $5,000.

Accepted Answer

A) True 
 B)False

Question 12

Equipment acquired at a cost of $126,000 has a book value of $42,000.Journalize the disposal of the equipment under the following independent assumptions.​  Journal

Accepted Answer

The answer of Equipment acquired at a cost of $126,000...

Question 13

Minerals removed from the earth are classified as intangible assets.

Accepted Answer

A) True 
 B)False

Question 14

Equipment costing $80,000 with a useful life of 10 years and a residual value of $8,000 has been depreciated for six years by the straight-line method.Assume a fiscal year ending December 31.

Accepted Answer

The answer of Equipment costing $80,000 with a useful life...

Question 15

A characteristic of a fixed asset is that it is

Accepted Answer

A)  intangible
B)  used in the operations of a business
C)  held for sale in the ordinary course of the business
D)  a short-term investmentE) B) and C)
F) A) and B)

Question 16

Financial statement data for the years ended December 31 for Parker Corporation are as follows:​​  (a) Determine the fixed asset turnover for the current and prior years.
(b) Does the change in fixed asset turnover from the prior year to the current year indicate a favorable or unfavorable trend?

Accepted Answer

​​ <img  loading="lazy" src="/assets/images/blured-textbook.svg" class="d-inline m-1" alt="blured image" width="139" height="30"> (a)Sales divided by average fixed as...

Question 17

Classify each of the following costs associated with long-lived assets as one of the following:
-Freight costs paid on purchase of new equipment

Accepted Answer

A)  Buildings
B)  Machinery and equipment
C)  Land
D)  Land improvementsE) A) and C)
F) C) and D)

Question 18

All property,plant,and equipment assets are depreciated over time.

Accepted Answer

A) True 
 B)False

Question 19

Match the intangible assets described with their proper classification (a-d) .
​
-Reputation of a company

Accepted Answer

A)  Patent
B)  Copyright
C)  Trademark
D)  GoodwillE) C) and D)
F) A) and B)

Question 20

The process of transferring the cost of an asset to an expense account is called all of the following except

Accepted Answer

A)  depletion
B)  allocation
C)  amortization
D)  depreciationE) C) and D)
F) A) and C)

Exam 10: Long-Term Assets: Fixed and Intangible

Equipment costing $80,000 with a useful life of 10 years and a residual value of $8,000 has been depreciated for six years by the straight-line method.Assume a fiscal year ending December 31.

Correct AnswerverifiedShow Answer

If a fixed asset with a book value of $10,000 is traded for a similar fixed asset,a trade-in allowance of $15,000 is granted by the seller,and the transaction is deemed to have commercial substance,the buyer would report a gain on exchange of fixed assets of $5,000.

Correct AnswerverifiedShow Answer

Match each account name to the financial statement section (a-i) in which it would appear. -Loss on Disposal of Asset

Correct AnswerverifiedShow Answer

Which of the following is true?

Correct AnswerverifiedShow Answer

Minerals removed from the earth are classified as intangible assets.

Correct AnswerverifiedShow Answer

Classify each of the following costs associated with long-lived assets as one of the following: -Fences around land at new business location

Correct AnswerverifiedShow Answer

The process of transferring the cost of an asset to an expense account is called all of the following except

Correct AnswerverifiedShow Answer

Match the intangible assets described with their proper classification (a-d) . ​ -Reputation of a company

Correct AnswerverifiedShow Answer

Equipment acquired at a cost of $126,000 has a book value of $42,000.Journalize the disposal of the equipment under the following independent assumptions.​ Journal

Correct AnswerverifiedShow Answer

A copy machine acquired on May 1 with a cost of $2,545 has an estimated useful life of three years.Assuming that it will have a residual value of $445,determine the depreciation for the first and second year by the straight-line method.Round your answers to the nearest whole dollar.

Correct AnswerverifiedStraight-Line Depreciation = (Cost - Es...View AnswerShow Answer

A gain can be realized when a fixed asset is discarded.

Correct AnswerverifiedShow Answer

Revising depreciation estimates affects the amounts of depreciation expense recorded in past periods.

Correct AnswerverifiedShow Answer

All property,plant,and equipment assets are depreciated over time.

Correct AnswerverifiedShow Answer

Classify each of the following as: -New landscaping

Correct AnswerverifiedShow Answer

Correct Answerverified​​ (a)Sales divided by average fixed as...View AnswerShow Answer

Computer equipment was acquired at the beginning of the year at a cost of $57,000 that has an estimated residual value of $9,000 and an estimated useful life of five years.Determine the second-year depreciation using the straight-line method.

Correct AnswerverifiedShow Answer

Classify each of the following costs associated with long-lived assets as one of the following: -Freight costs paid on purchase of new equipment

Correct AnswerverifiedShow Answer

When a company exchanges machinery and receives a trade-in allowance less than the book value,this transaction would be recorded with which of the following entries?

Correct AnswerverifiedShow Answer

A characteristic of a fixed asset is that it is

Correct AnswerverifiedShow Answer

Match the intangible assets described with their proper classification (a-d) . ​ -Nike swoosh

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Match the intangible assets described with their proper classification (a-d) . -Reputation of a company

Correct Answer
verified

Equipment acquired at a cost of $126,000 has a book value of $42,000.Journalize the disposal of the equipment under the following independent assumptions. Journal

Correct Answer
verified

Correct Answer
verified
Straight-Line Depreciation =
(Cost - Es...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
(a)Sales divided by average fixed as...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Match the intangible assets described with their proper classification (a-d) . -Nike swoosh

Correct Answer
verified