B record unit capacity of the asset c record the

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b. Record unit capacity of the asset. c. Record the acquisition cost of the asset. d. Record subsequent expenditures on the asset. e. Account for the disposal of the asset. FeedbackThe correct answer is: Record unit capacity of the asset.Question 6CorrectMark 10.00 out of 10.00Flag questionQuestion text
The units-of-production depreciation formula is:Select one:a. (x)Deprecation per period = Asset cost + Estimated salvage value. b. (y)Estimated total units of production(service)during useful life of asset. c. (z)Depreciation per period = Depreciation per unit × Number of units of goods or services produced. d. (x), (y), and (z). e. (x) and (z) only. FeedbackThe correct answer is: (z)Depreciation per period = Depreciation per unit × Number of units of goods or services produced.Question 7CorrectMark 10.00 out of 10.00Flag questionQuestion textWhen a fully depreciated asset is still in use:Select one:a. It should be written off the books. b. Part of the depreciation should be reversed. c. The cost should be adjusted to market value. d. Prior years' depreciation should be adjusted.
e. The accrued portion of accumulated depreciation should remain unchanged and no more depreciation should be taken. Correct. The cost and accumulated depreciation should not be removed from the accounts until the disposal of the asset.FeedbackThe correct answer is: The accrued portion of accumulated depreciation should remain unchanged and no more depreciation should be taken.Question 8CorrectMark 10.00 out of 10.00Flag questionQuestion textA truck costing $45,000 and having an estimated salvage value of $4,500 and an original life of five years is exchanged for a new truck. The cash price of the new truck is $57,000. A trade-in allowance of $22,500 is received for the old truck and the difference is paid in cash. The old truck has been depreciated for three years using the straight-line method. Assuming that the exchange would be deemed to not have commercial substance, the new truck would be recorded at:Select one:a. $34,500. b. $57,000. c. $55,200. Correct. On the date of exchange, the book value of the old truck is $20,700 ($45,000 minus accumulated depreciation of $24,300). The trade-in allowance of $22,500 indicates a gain on exchange of $1,800. In an exchange of non-monetary assets not having commercial substance, a gain is not recognized, but reduces the cost of a new asset. Therefore, the cost of the new truck is$55,200 ($57,000 minus $1,800), and no gain is recognized.
d. None of these. e. $43,200. FeedbackThe correct answer is: $55,200.Question 9CorrectMark 10.00 out of 10.00Flag questionQuestion textLand containing a mine having an estimated 1,000,000 tons of economically extractable ore is purchased for $375,000. After the ore deposit is removed, the land will be worth $75,000. If 100,000 tons of ore are mined and sold during the first year, the depletion cost charged to expense for the year is:Select one:a. $300,000.

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