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11. ____ The book value of an asset is equal to the cost minus…a. the accumulate

ID: 2469371 • Letter: 1

Question

11. ____ The book value of an asset is equal to the cost minus…a. the accumulated depreciation b. the salvage value c. the straight line rate d. the DDB rate

12. ____ Johnson purchases a piece of equipment with an estimated useful life of 4 years. The DDB rate for this asset would be…a. 8% b. .125 c. .25 d. .50

13. ____ On which financial statement would a gain or loss be reported? A. Balance Sheet b. Income Statement c. Owner’s Equity Statement d. None of these

14. ____ Name two accelerated depreciation methods: a. SL and DDB b. SL and Units of Activity c. DDB and MACRS d. SL and MACRS

15. ____ Goodwill is an intangible asset that arises when: a. a company sells a really popular product b. the company wins the President’s Award c. Mr. O’Neill brings a box of Krispy Kremes to class d. one company purchases another company, paying more for it that the value of its net assets

Explanation / Answer

11. Book Value = Cost - Acumulated Depreciation. Thus, Option A.