The normal treatment of litigation costs to

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90. The normal treatment of litigation costs to successfully defend an intangible right under U.S. GAAP and International Financial Reporting Standards (IFRS), respectively, is: A. Option a B. Option b C. Option c D. Option d 91. Canliss Mining uses the retirement method to determine depreciation on its office equipment. During 2011, its first year of operations, office equipment was purchased at a cost of $14,000. Useful life of the equipment averages four years and no salvage value is anticipated. In 2013, equipment costing $5,000 was sold for $600 and replaced with new equipment costing $6,000. Canliss would record 2013 depreciation of:
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92. Canliss Mining uses the replacement method to determine depreciation on its office equipment. During 2011, its first year of operations, office equipment was purchased at a cost of $14,000. Useful life of the equipment averages four years and no salvage value is anticipated. In 2013, equipment costing $5,000 was sold for $600 and replaced with new equipment costing $6,000. Canliss would record 2013 depreciation of: 93. 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. Straight-line method Occurs with a significant decline in value. ____ 2. Double-declining balance Produces a level amount of annual depreciation. ____ 3. Activity-based method Aggregates assets that are physically dissimilar when calculating depreciation. ____ 4. Composite method Does not subtract residual value from cost when calculating depreciation. ____ 5. Write-down of asset Estimates service life in units of output. ____
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94. Listed below are five terms followed by a list of phrases that describe or characterize five of the terms. Match each phrase with the correct term. 1. Rearrangements Cost less accumulated depreciation. ____ 2. Improvements Triggers commencement of depreciation. ____ 3. Book value Only used for tax purposes. ____ 4. Percentage depletion Expenditures made to restructure an asset without addition, replacement, or improvement. ____ 5. Date placed in service Three methods are employed to record these costs. ____ 95. 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. Change in depreciation method Cost allocation for a natural resource. ____ 2. Depreciable base Treated prospectively like a change in estimate ____ 3. Depletion Amount of use expected from plant and equipment asset. ____ 4. Amortization Cost less residual value. ____ 5. Service life Cost allocation for an intangible asset. ____
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96. 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. Prior period adjustment Allocation of cost for plant and equipment. ____ 2. Change in useful life Results from subsequent year correction of a material error. ____ 3. Repairs and maintenance Generate declining amounts of depreciation over time. ____ 4. Depreciation Is a change in accounting estimate. ____ 5. Accelerated methods
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