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Exam 10: Long-Term Assets: Fixed and Intangible

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Question 51

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Classify each of the following costs associated with long-lived assets as one of the following: -Landscaping at new business location

A) Buildings
B) Machinery and equipment
C) Land
D) Land improvements

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Question 52

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Copy equipment was acquired at the beginning of the year at a cost of $72,000 that has an estimated residual value of $9,000 and an estimated useful life of five years. It is estimated that the machine will output an estimated 1,000,000 copies.This year,315,000 copies were made.Determine the (a)depreciable cost, (b)depreciation rate,and (c)units-of-activity depreciation for the year.

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Question 53

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When a property,plant,and equipment asset is sold for cash,any gain or loss on the asset sold should be recorded.

The cost of replacing an engine in a truck is an example of ordinary maintenance.

The formula for depreciable cost is

Fill in the missing numbers using the formula for fixed asset turnover:​

An asset leased under an operating lease will appear on the balance sheet as a long-term asset.

The cost of repairing damage to a machine during installation is debited to a fixed asset account.

A fixed asset with a cost of $52,000 and accumulated depreciation of $47,500 is traded for a similar asset priced at $60,000 (fair market value) in a transaction with commercial substance. Assuming a trade-in allowance of $5,000,at what cost will the new equipment be recorded in the books?

When exchanging equipment,if the trade-in allowance is greater than the book value a loss results.

The amount of depreciation expense for a fixed asset costing $95,000,with an estimated residual value of $5,000 and a useful life of five years or 20,000 operating hours,is $21,375 by the units-of-activity method during a period when the asset was used for 4,500 hours.

Classify each of the following costs associated with long-lived assets as one of the following: -Cost of grading and leveling land to be used for a new business site

Match each account name to the financial statement section (a-i) in which it would appear. -Loss from Impaired Goodwill

Which intangible assets are amortized over their useful life?

On July 1,Hartford Construction purchases a bulldozer for $228,000.The equipment has a nine-year life with a residual value of $16,000.Hartford uses the units-of-activity method of depreciation,and the bulldozer is expected to yield 26,500 operating hours. (a)Calculate the depreciation expense per hour of operation. (b)The bulldozer is operated 1,250 hours in the first year,2,755 hours in the second year,and 1,225 hours in thethird year of operations.Journalize the depreciation expense for each year.​

If a fixed asset,such as a computer,were purchased on January 1 for $3,750 with an estimated life of three years and a salvage or residual value of $150,the journal entry for monthly expense under straight-line depreciation is

Fixed assets are ordinarily presented on the balance sheet

Equipment was acquired at the beginning of the year at a cost of $75,000.The equipment was depreciated using the straight-line method based on an estimated useful life of six years and an estimated residual value of $7,500.

An estimate of the amount for which an asset can be sold at the end of its useful life is called residual value.

Journalize each of the following transactions: