1.Which of the following expenditures would be included as a cost of an asset? S

Question

1.Which of the following expenditures would be included as a cost of an asset?

Select one:

a.Mistakes in installation

b.Vandalism

c.Delinquent property taxes

d.Uninsured theft loss

2.Which of the following expenditures would NOT be included in the cost of an asset?

Select one:

a.Freight costs

b.Vandalism

c.Sales tax

d.Costs of clearing land

3.A company acquired some land for $80,000 to construct a new office complex. Legal fees paid were $2,300, delinquent taxes assumed were $3,400 and $5,850 was paid to remove an old building from which salvaged materials sold for $950. What is the cost basis for the land?

Select one:

a.$90,600

b.$91,550

c.$88,150

d.$87,200

4.Which of the following would NOT qualify as a capital expenditure?

Select one:

a.Overhauled an engine

b.Installed new carpet

c.Replaced tires on company trucks

d.Replaced the warehouse roof

5.Book value is defined as __________.

Select one:

a.Current market value less residual value

b.Cost less residual value

c.Current market value less accumulated depreciation

d.Cost less accumulated depreciation

Question 6

What type of depreciation occurs when an asset can no longer provide services at the level originally intended?

Select one:

a.Physical depreciation

b.Market depreciation

c.Cost depreciation

d.Functional depreciation

Question 7

Which method of depreciation considers residual value in computing the normal periodic depreciation?

Select one:

a. Straight-line

b. MACRS

c. Declining balance

d. All the above use residual value

Question 8

The accounting term depreciation measures __________.

Select one:

a. An assets market value decline

b. The amount of cash a company sets aside for asset replacement

c. The amount of asset cost allocated to expense over periods benefited

d. Anticipated losses if sold in the used market

Question 9

Accelerated depreciation is primarily used for __________.

Select one:

a. The financial statements of large companies

b. The financial statements of small companies

c. Income tax purposes

d. Both financial reporting and income taxes by most companies

Question 10

To measure depreciation, all of the following most be known EXCEPT __________.

Select one:

a. Market value

b. Residual value

c. Historical cost

d. Estimated life

Question 11

Equipment was purchased for $32,000. It has a useful life of 5 years and a residual value of $4,000. What is depreciation expense for year two under the double declining balance method?

Select one:

a. $5,600

b. $6,720

c. $7,680

d. $12,800

Question 12

On September 1, a machine with a useful life of 8 years and a residual value of $5,000 was purchased for $47,000. What is depreciation expense in the year of purchase under straight-line depreciation assuming a December 31 year end?

Select one:

a. $5,250

b. $5,875

c. $1,750

d. $1,958

Explanation / Answer

Answer

1. c.Delinquent property taxes

The following costs are included as an expense:

1. Vandalism 2. Mistakes in installation 3. Uninsured theft 4. Damage during unpacking and installing 5. Fines for not obtaining proper permits from governmental agencies.

2.b.Vandalism

The following costs are included as an expense:
1. Vandalism 2. Mistakes in installation 3. Uninsured theft 4. Damage during unpacking and installing 5. Fines for not obtaining proper permits from governmental agencies.

3.a.$90,600

Cost of land = $80,000+$2,300+$3,400+$5,850 - $950 =$90600

4.a.Overhauled an engine

such as a truck — represent useful items a company can use for many years. Businesses may need to overhaul a vehicle or other fixed asset to keep it working properly. Accountants label these activities as asset improvements or capital expenditures. This keeps the transaction separate from regular fixed asset accounts.

5.d.Cost less accumulated depreciation

Written down value of an asset as shown in the firm's balance sheet. BV is computed by deducting accumulated depreciation from the purchase price of the asset. Because, according to the provisions of GAAP, an asset's BV cannot show any increase or decrease in the asset's market value, it rarely reflects the asset's true worth.

( Please post only Four question.

under chegg policy i give only four answer in one time

please post seperate remaning question )

Related Questions

Navigate

• Browse (All)
• Browse 1
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.