1) Land improvements are depreciable assets. .docx - 1 Land improvements are depreciable assets True False 2 Which of the following is not a depreciable

1) Land improvements are depreciable assets. .docx

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1) Land improvements are depreciable assets. True False 2) Which of the following is not a depreciable asset? Buildings Land
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Land improvements Equipment 3) Expenditures to maintain the operating efficiency and expected productive life of the unit are expensed as incurred. True False 4)
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What is depreciation? An adjustment to market value over time A valuation approach A cost allocation method A cash accumulation approach 5) Cuso Company purchased equipment on January 1, 2016, 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. What is the amount of accumulated depreciation at December 31, 2017, if the straight-line method of depreciation is used?
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$78,000 $156,000 $160,000 $80,000 6) When there is a change in estimated depreciation previous depreciation should be corrected. current and future years’ depreciation should be revised. new plant assets should be acquired to replace the old.
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only future years’ depreciation should be revised.
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  • Fall '16
  • Christopher L. Litten, MA, Ph.D.

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