Hello, I need help answering these 7 questions. Thank you kindly for your time a

Question

Hello, I need help answering these 7 questions. Thank you kindly for your time and your generous help.

1)
A company had a tractor destroyed by fire. The tractor originally cost $145,000 with accumulated depreciation of $78,000. The proceeds from the insurance company were $100,000. The company should recognize:

A gain of $33,000.

A gain of $67,000.

A gain of $100,000.

A loss of $67,000.

A loss of $33,000.

2)

Revenue expenditures are additional costs of plant assets that do not materially increase the assets' life or productive capabilities.

True

False

3)
Capital expenditures are expenditures that keep assets in normal, good operating condition.

True

False

4)
Extraordinary repairs are expenditures extending the asset's useful life beyond its original estimate, and are capital expenditures because they benefit future periods.

True

False

5)
Revenue expenditures are also called balance sheet expenditures.

True

False

6)
Betterments are a type of capital expenditure.

True

False

7)
Revenue expenditures:

Are additional costs of plant assets that do not materially increase the asset's life or its productive capabilities.

Are known as balance sheet expenditures because they relate to plant assets.

Extend the asset's useful life.

Substantially benefit future periods.

Are debited to asset accounts when incurred.

1)
A company had a tractor destroyed by fire. The tractor originally cost $145,000 with accumulated depreciation of $78,000. The proceeds from the insurance company were $100,000. The company should recognize:

Explanation / Answer

1)
A company had a tractor destroyed by fire. The tractor originally cost $145,000 with accumulated depreciation of $78,000. The proceeds from the insurance company were $100,000. The company should recognize:

Book Value of Tractor lost = Cost-accumulated Depreciation

Book Value of Tractor lost = 145000-78000

Book Value of Tractor lost = 67000

Net Proceed from Insuarnce company = 100000

company should recognize Gain = 100000-67000

company should recognize Gain = $ 33000

Answer

A gain of $33,000.

2)

Revenue expenditures are additional costs of plant assets that do not materially increase the assets' life or productive capabilities.

True

Note : If additional costs of plant assets that do materially increase the assets' life or productive capabilities than it would be a capital expenditure

3)
Capital expenditures are expenditures that keep assets in normal, good operating condition.

False

Note : Revenue Expenditure  are expenditures that keep assets in normal, good operating condition

4)
Extraordinary repairs are expenditures extending the asset's useful life beyond its original estimate, and are capital expenditures because they benefit future periods.

True

Note: If the useful life is increased or it would provide additional benefiet from the asset than the expenditure should be capitalised

5)
Revenue expenditures are also called balance sheet expenditures.

False

Note : Capital expenditures are also called balance sheet expenditures , Revenue expenditure are profit los expenditure

6)
Betterments are a type of capital expenditure.

True

Note : Betterment means the asset has increased its useful life or provide extra benefiet

7)
Revenue expenditures:

Are additional costs of plant assets that do not materially increase the asset's life or its productive capabilities.

Note : If additional costs of plant assets that do materially increase the assets' life or productive capabilities than it would be a capital expenditure, All other points are for capital expenditure

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