Question 1

Intangible assets

Accepted Answer

A)   should be reported under the heading Property, Plant, and Equipment.
B)   are not reported on the balance sheet because they lack physical substance.
C)   should be reported as Current Assets on the balance sheet.
D)   should be reported as a separate classification on the balance sheet.E) None of the above
F) All of the above

Question 2

Recording depreciation each period is necessary in accordance with the

Accepted Answer

A)   going concern principle.
B)   historical cost principle.
C)   expense recognition principle.
D)   asset valuation principle.E) All of the above
F) B) and D)

Question 3

Improvements are

Accepted Answer

A)   revenue expenditures.
B)   debited to an appropriate asset account when they increase useful life.
C)   debited to accumulated depreciation when they do not increase useful life.
D)   debited to an appropriate expense account when they do not increase useful life.E) None of the above
F) C) and D)

Question 4

A company sells a plant asset which originally cost $360,000 for $120,000 on December 31, 2015. The Accumulated Depreciation account had a balance of $144,000 after the current year's depreciation of $36,000 had been recorded. The company should recognize a

Accepted Answer

A)   $240,000 loss on disposal.
B)   $96,000 gain on disposal.
C)   $96,000 loss on disposal.
D)   $60,000 loss on disposal.E) All of the above
F) C) and D)

Question 5

Mott Company uses the units-of-activity method in computing depreciation. A new plant asset is purchased for $48,000 that will produce an estimated 100,000 units over its useful life. Estimated salvage value at the end of its useful life is $4,000. What is the depreciation cost per unit?

Accepted Answer

A)   $4.40
B)   $4.80
C)   $.44
D)   $.48E) All of the above
F) B) and C)

Question 6

A term that is not synonymous with property, plant, and equipment is

Accepted Answer

A)   plant assets.
B)   fixed assets.
C)   intangible assets.
D)   long-lived tangible assets.E) A) and C)
F) A) and B)

Exam 9: Plant Assets, Natural Resources, and Intangible Assets

A company sells a plant asset which originally cost $360,000 for $120,000 on December 31, 2015. The Accumulated Depreciation account had a balance of $144,000 after the current year's depreciation of $36,000 had been recorded. The company should recognize a

Correct Answer
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A term that is not synonymous with property, plant, and equipment is

Correct Answer
verified

Improvements are

Correct Answer
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Recording depreciation each period is necessary in accordance with the

Correct Answer
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Mott Company uses the units-of-activity method in computing depreciation. A new plant asset is purchased for $48,000 that will produce an estimated 100,000 units over its useful life. Estimated salvage value at the end of its useful life is $4,000. What is the depreciation cost per unit?

Correct Answer
verified

Intangible assets

Correct Answer
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Exam 9: Plant Assets, Natural Resources, and Intangible Assets

A company sells a plant asset which originally cost $360,000 for $120,000 on December 31, 2015. The Accumulated Depreciation account had a balance of $144,000 after the current year's depreciation of $36,000 had been recorded. The company should recognize a

Correct AnswerverifiedShow Answer

A term that is not synonymous with property, plant, and equipment is

Correct AnswerverifiedShow Answer

Improvements are

Correct AnswerverifiedShow Answer

Recording depreciation each period is necessary in accordance with the

Correct AnswerverifiedShow Answer

Mott Company uses the units-of-activity method in computing depreciation. A new plant asset is purchased for $48,000 that will produce an estimated 100,000 units over its useful life. Estimated salvage value at the end of its useful life is $4,000. What is the depreciation cost per unit?

Correct AnswerverifiedShow Answer

Intangible assets

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
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