ACC/291T Principles Of Accounting Ii The Latest Version A+ Study Guide **********************************************
ACC 291T Entire Course Link http://www.onlinehelp123.com/acc-291 ********************************************** ACC 291T Wk 5 Practice: Connect Knowledge Check (2021.7 New) A company had a tractor destroyed by fire. The tractor originally cost $85,000 with accumulated depreciation of $60,000. The proceeds from the insurance company were $20,000. The company should recognize: Multiple Choice • A loss of $20,000. • A gain of $65,000. • A gain of $20,000. • A gain of $5,000. • A loss of $5,000.
Amortization is: Multiple Choice • The process of allocating the cost of natural resources to periods when they are consumed. • Also called depletion. • An accelerated form of expensing an asset's cost. •
The systematic allocation of the cost of an intangible asset to expense over its estimated useful life. •
A company purchased equipment valued at $66,000. It traded in old equipment for a $9,000 tradein allowance and the company paid $57,000 cash with the trade-in. The old equipment cost $44,000 and had accumulated depreciation of $36,000. This transaction has commercial substance. What is the recorded value of the new equipment? Multiple Choice • $9,000. • $8,000. • $57,000. • $66,000. • $65,000.
Depletion is: Multiple Choice • Calculated using the double-declining balance method. • The process of allocating the cost of natural resources to the period when it is consumed. • The process of allocating the cost of intangibles to periods when they are used. • An increase in the value of a natural resource when incurred. • Also called amortization.
The useful life of a plant asset is: Multiple Choice • Never related to its physical life. • The length of time it is productively used in a company's operations. • Determined by law.
• Its productive life, but not to exceed one year. • Determined by the FASB.
Which of the following is an example of an extraordinary repair? Multiple Choice • Routine machine maintenance. • Carpet cleaning and repair. • Replacement of all florescent light tubes in an office. • New tires for a truck. • Replacing the roof on a manufacturing warehouse.
Beckman Enterprises purchased a depreciable asset on October 1, Year 1 at a cost of $100,000. The asset is expected to have a salvage value of $20,000 at the end of its five-year useful life. If the asset is depreciated on the double-declining-balance method, the asset's book value on December 31, Year 2 will be: Multiple Choice • $54,000 • $90,000 • $36,000 • $42,000 • $16,000
A change in an accounting estimate is: Multiple Choice • Considered an error in the financial statements. • Reflected in past financial statements. •
Not allowed under current accounting rules. • Reflected in current and future years' financial statements, not in prior statements. • Reflected in future financial statements and also requires modification of past statements.
Martin Company purchases a machine at the beginning of the year at a cost of $60,000. The machine is depreciated using the double-declining-balance method. The machine’s useful life is estimated to be 4 years with a $5,000 salvage value. The machine’s book value at the end of year 3 is: Multiple Choice • $7,500. • $52,500. • $45,000. • $6,875. • $30,000.
Mohr Company purchases a machine at the beginning of the year at a cost of $24,000. The machine is depreciated using the double-declining-balance method. The machine’s useful life is estimated to be 5 years with a $4,000 salvage value. Depreciation expense in year 2 is: Multiple Choice • $5,760. • $8,000. • $9,600. • $4,800. • $14,400.