Chapter 7 Flashcards
Brett man inc purchased a tract of land a small building and some equipment for 1.8. The appraised value for the land was 1420000, the building was 650.000 and the equip money was 430.000 What is the cost of the land. A: 600.000 B1.022.400 C 1.42.000 D. None
B
On July 2016 Purchased a new equipment that cost 65.000. Estimates useful life is 10 years and estimated residual value is 5000
What is the depreciation expense for 2016 if Amir uses the straight line method A:3000 B6000 C3250 D6500
A
Aaaume amir communications purchased the equipment in January 1, 2016. If Amir us a the straight line method for depreciation, what is the assets book value at the end of 2017 A: 54000 B:59.000 C: 48.000 D:53.000
D
Assume Amir communications purchased the equipment in January 1st 2106. If Amir uses the double declining method, what is the depreciation in 2017 Cost 65.000 useful life 10 A: 13000 B: 10.400 C: 12.000 D: 9.600
B 65.000 x 0.2 =13.000 Cost - Accumulated depreciation 65.000-13.000=52.000 Asset carrying amount x 0.2 = Depreciation expense
Which of the following assets is not subject to a decreasing book value through depreciation, depletion or amortization ? A: Goodwill B: Land improvement C: Natural resourced D: Intangibles
A
Depletion expense
Purchased value x ( used unit/ total units)
Which account is credited in the adjusting entry to allocate the cost of equipment? A: Equipment expense B: Depreciation expense C: Accumluated Equipment D : Accumulated Delreciation
D
.Company XYZ bought a PPE on January 1, 2010, at a cost of $45,000. Estimated residual value is $5,000 and the estimateduseful life is 8 years. The company uses the straight-line depreciation. On January 1, 2013, management revises the remaining estimated life to be 7 years, with estimated residual value of $2,000. The balance in Accumulated Depreciation on December 31, 2013, is A: 16,358 B: 21,429 C: 10.000 D: 19.000
D
Using an accelerated depreciation method will cause a profitable company to incur:
A.Less taxes in early years of the asset’s use as compared to later years
B
More taxes in early years of the asset’s use as compared to later years
C.The same amount of taxes inearly years of the asset’s use as in the later years
D.None of the above
A
The adjustment for depreciation is an example of a \:ACCRUAL adjustment B : Contra C: Defferal D: unearned
C
ABC Company has a beginning balance in the Land account of $70,000. During the year, they purchased $30,000 worth of land. At the end of the year, the balance in the land account was $80,000. The cost of the land that ABC sold was: A:100.000 B:80.000 C:20.000 D:180.000
C
Beginning balance + Purchases - Book value of the assets = Ending balance
ABC Company has a beginning balance in the Land account of $70,000. During the year, they purchased $30,000 worth of land. At the end of the year, the balance in the land account was $80,000. The cost of the land that ABC sold was: A:100.000 B:80.000 C:20.000 D:180.000
C
Beginning balance + Purchases - Book value of the assets = Ending balance
The depreciation process attempts to match the:
A: Residual value if the asset and the future market value of the asset
B: Carrying amount of the asset and the current market value of the asset
C: Cost if the asset and the cash required to replace the asset
D: The cost of the asset over the period on which it is expected to generate revenues
D
Which of the following statements regarding intangible assets is not true
A: Intangible assets with finite life at not amortized
D: Intangible assets with an indefinite life are not amortized
A
