Which of the following is not a land improvement?
An asset’s book value is computed as its original cost minus…
An asset’s book value is computed as its original cost minus residual value, less accumulated depreciation.
Assuming an asset is used evenly over a four-year service li…
Assuming an asset is used evenly over a four-year service life, which method of depreciation will always result in the largest amount of depreciation in the first year?
A gain is recognized on the disposal of an asset when the as…
A gain is recognized on the disposal of an asset when the asset’s book value is greater than the consideration received.
A company purchased a 3-acre tract of land for a building si…
A company purchased a 3-acre tract of land for a building site for $350,000. The company demolished the old building at a cost of $12,000, but was able to sell scrap from the building for $1,500. The cost of title transfer was $900 and attorney fees for reviewing the contract was $500. Property taxes paid were $3,000, of which $250 covered the period after the purchase date. The capitalized cost of the land is:
Testing of new equipment should be included in the initial c…
Testing of new equipment should be included in the initial cost of the equipment on the balance sheet.
The factors that need to be determined to compute depreciati…
The factors that need to be determined to compute depreciation are an asset’s:
The cost of an intangible asset with a finite useful life is…
The cost of an intangible asset with a finite useful life is amortized.
An asset was acquired on January 1, 2021, for $78,000 with a…
An asset was acquired on January 1, 2021, for $78,000 with an estimated five-year life and $13,000 residual value. The company uses units-of-production depreciation and expects the asset to produce 20,000 units. Actual production was: 2021 = 500 units; 2022 = 3,000 units; 2023 = 3,500 units; 2024 = 1,000 units. What amount will the company record for annual depreciation expense in 2023?
Total depreciation is the same over the life of an asset reg…
Total depreciation is the same over the life of an asset regardless of the method of depreciation used.