Question

21) Which of the following t h earlier years than in later years! A) the double-declining balance method C) the units-of-production method e cales a higher amount of depreciation in game 27) D) the first in first- w hed 28) A fully depreciated plant asset A) is no longer reported on the balance sheet B) can no longer be used in the business C) is removed from the counting records D) can be discarded, sold or exchanged for another plant asset 29) The gain or loss on the sale of a p received with the A) original cost s on the sale of a plant asset is determined by comparing the market value of of asset sold. B) salvage value C) residual value D ) book value 29) 30) Motor Sales sold its old office furt sales sold its old office furniture for $400. The original cost was $16.000, and at the time of Sale, accumulated depreciation was $14.000 What is the effect of this transaction? A) loss of $6000 C) gain of 56000 D) loss of $4000 30) 31) Which of the following is an expense that results from the usage of a natural resource? A) obsolescence B) depletion C) depreciation D) amortization 31) 32) 32) Intangible assets A) are not recorded in the books because they have no physical substance B) convey special rights from patents, copyrights, trademarks, and other creative works C) represent assets for which the market value cannot be determined D) All of the statements are correct. 33)_ 33) Which of the following is an intangible asset? A) equipment B) copyright C) land D) building 34) Businesses record goodwill A) when they continue the business of an acquired company B) if their market value has increased significantly in the recent years C) if they acquire another company at an amount higher than the market value of its net assets D) when they enjoy an outstanding reputation and loyalty with customers 35) 35) Which of the following items should be amortized? A) patents, copyrights, trademarks B) natural resources C) goodwill D) tangible property, plant and equipment, other than land

Answer 1

Q7) (A) the dobble- declining -balance methwd Doukle declining balauce mehodb allocabes hishere e arlier yea rs. in elepreciation for ahother rezchauged Can be discarded, Sold, or plaut asset . A fully depreciated Plaut asset is rpotedih auumulated depreuatien. with 6 alanu sheet 29) Book value loss.m sale Goin or Sale Value - Buuk Value EB) Gain $4o0 Bouk value of Assets Gain = Sale value $ Go00 - 92ow १५०० Buok Value of A ssets= orginal ost accomulated dep $ 18000- $1५,७ठ० 42,000 ®) Pepletim Deyleternis eapense form usage of natind coalmire, water. etc resoyoces suh

2) (B)convey special rights from páteuts, copysig lt s, Trade marks Creative wok. and othen Int augible patusts, copyoig Ws assids incudes Hhe sight aguived foom ' Trademahs (3) Copyoight Copyonght is an intangible arsts that puvides bight of publication and wage of to the authos. con use its cupyuisht publijhad inlis or No other peoson Own n ame. 4 ) Ce) it they acquire anothey company at an ameunt hi ghen than the manket value of t's net aret, Guodwill should Ger cnsideration has ben paid forit. »eeorded inthe buukes aly if sum ot another compay is acquisre the gued will is the markut value of ossetr dit rence behueen the amount paid for sueh assetis. and (35) (A) Paluts cot, trademasty A mostization is expence that educe the inangible to useful life of. intengible Assets, usuely Patent , copyaisht and trademark a srats in car ot