13) The correct option is B) Book value, because the book value of an asset is equal to the cost of an asset less accumulated depreciation on the asset.
14) The correct option is B) $1,667, Calculation of depreciation:
Depreciation expense = [(cost-salvage value)/usdeful life]*(number of months asset used/total number of months)
= [(28,000-3,000)/5]*(4/12)
= [25,000/5]*(4/12)
= $1,667
15) The correct option is C) Extends the useful life of an asset, because ordinary repairs do not extend the useful life of an asset, repairs are normal expenses incurred to maintain the asset in good condition.
16) The correct option is B) $800, loss. The book value of the asset is more than the sale value so the firm incurred a loss.
Calculation of loss:
Loss = Book value - Sale price
= (Cost - Accumulated depreciation) - Sale price
= (18,000 - 17,200) - 0
= 800
17) The correct option is C) Debit depletion expense and credit accumulated depreciation expense by $93,750.
Calculation of depletion expense:
Depletion expense = Depletion per unit x Units consumed during the year
= 0.625 x 150000
= 93,750
Working note:
Depletion per unit = (Cost-salvage value)/Total units expected
= (1500000 - 250000)/ 2000000
= 0.625
.) The total cost of an asset less its accumulated depreciation is calle A) Historical cost. Book value. C) Present...
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