Expenditures made to maintain a given level of

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Expenditures made to maintain a given level of benefits from an asset. ____ 97. Listed below are five terms followed by a list of phrases that describe or characterize each of the terms. Match each phrase with the correct term. 1. Time-based method The reason for not amortizing goodwill. ____ 2. Depreciation Aggregates assets that are similar. ____ 3. Indefinite life Cost allocation for plant and equipment. ____ 4. Sum-of-the-years'- digits method Estimates service life in years. ____ 5. Group method Results in depreciation declining by the same amount in subsequent years. ____
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98. Listed below are five terms followed by a list of phrases that describe or characterize each of the terms. Match each phrase with the correct term. 1. Additions Should be expensed unless they are material and provide a future benefit. ____ 2. Cost of defending intangible rights Should be capitalized since they provide future benefits. ____ 3. Impairment Considered if indicated that book value may not be recoverable. ____ 4. Residual value Estimate of recoverable cost at end of an asset's life. ____ 5. Rearrangements Capitalize unless unsuccessful. ____
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99. Listed below are 10 terms followed by a list of phrases that describe or characterize the terms. Match each phrase with the correct term. 1. Allocation base The replacement of a major component of plant and equipment asset. ____ 2. Additions Can be expressed in units of time or in units of activity. ____ 3. Service life Cost allocation for an intangible asset. ____ 4. Amortization Allocates an equal amount of depreciable base to each period. ____ 5. Double-declining balance Multiplies book value by twice the straight-line rate. ____ 6. Activity-based method Estimates service life in terms of a measure of activity. ____ 7. Depletion The amount the company expects to receive for the asset at the end of its life. ____ 8. Improvements Cost allocation for natural resources. ____ 9. Residual value Adding a new major component to existing plant and equipment. ____ 10. Straight-line method The difference between cost and residual value. ____
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100. Ellen's Antiques reported the following in its December 31, 2013, balance sheet: In a disclosure note, Ellen's indicates that it uses straight-line depreciation over eight years and estimates salvage value at 10% of cost. Required: Compute the average age of Ellen's equipment at 12/31/2012.
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101. Comet Cleaning Co. reported the following on its December 31, 2013, balance sheet: Equipment (at cost)…..$3,000,000 In a disclosure note, Comet indicates that it uses straight-line depreciation over six years and estimates salvage value as 10% of cost. Comet's equipment averages 4.5 years at December 31, 2013. Required: What is the book value of Comet's equipment at December 31, 2013? On January 1, 2013, Hobart Mfg. Co. purchased a drill press at a cost of $36,000. The drill press is expected to last 10 years and has a residual value of $6,000. During its 10-year life, the equipment is expected to produce 500,000 units of product. In 2013 and 2014, 25,000 and 84,000 units, respectively, were produced.
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102. Required: Compute depreciation for 2013 and 2014 and the book value of the drill press at December 31, 2013 and 2014, assuming the straight-line method is used.
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