Question : 101.The gain the disposal of equipment recognized when: A. The book value : 1237686

 

 

101.The gain on the disposal of equipment is recognized when:   

A. The book value of the equipment is greater than the value received.

 

B. The book value of the equipment is less than the value received.

 

C. A salvage value exists.

 

D. A gain should not be recognized on the disposal of an asset.

 

 

 

 

102.For financial reporting purposes, the gain or loss on the sale of a plant asset is determined by comparing the asset’s:   

A. Cost with its book value.

 

B. Sales price with its book value.

 

C. Tax basis with its book value.

 

D. Sales price with its tax basis.

 

 

 

 

103.Clark Imports sold a depreciable plant asset for cash of $35,000. The accumulated depreciation amounted to $70,000, and a loss of $5,000 was recognized on the sale. Under these circumstances, the original cost of the asset must have been:   

A. $65,000.

 

B. $75,000.

 

C. $100,000.

 

D. $110,000.

(x – $70,000) = $5,000 + $35,000; x = $110,000

 

 

 

104.Mayer Instrumentation sold a depreciable asset for cash of $300,000. The original cost of the asset was $1,200,000. Mayer recognized a gain of $45,000 on the sale. What was the amount of accumulated depreciation on the asset at the time of its sale?   

A. $945,000.

 

B. $255,000.

 

C. $1,155,000.

 

D. $990,000.

($1,200,000 – x) = $300,000 – $45,000; x = $945,000

 

 

 

105.Suffolk Associates sold office furniture for cash of $42,000. The accumulated depreciation at the date of sale amounted to $38,000, and a gain of $18,000 was recognized on the sale. The original cost of the asset must have been:   

A. $56,000.

 

B. $62,000.

 

C. $84,000.

 

D. $59,000.

x – $38,000 = $42,000 – $18,000; x = $62,000

 

 

 

106.Lewis Imports sold a depreciable plant asset for cash of $135,000. The accumulated depreciation amounted to $170,000, and a loss of $15,000 was recognized on the sale. Under these circumstances, the original cost of the asset must have been:   

A. $120,000.

 

B. $155,000.

 

C. $185,000.

 

D. $320,000.

(x – $170,000) = $15,000 + $135,000; x = $320,000

 

 

 

107.Cranston Instrumentation sold a depreciable asset for cash of $150,000. The original cost of the asset was $600,000. Cranston recognized a gain of $22,500 on the sale. What was the amount of accumulated depreciation on the asset at the time of its sale?   

A. $472,500.

 

B. $127,500.

 

C. $577,500.

 

D. $495,000.

($600,000 – x) = $150,000 – $22,500; x = $472,500

 

 

 

108.Glouchester Associates sold office equipment for cash of $142,000. The accumulated depreciation at date of sale amounted to $138,000, and a gain of $18,000 was recognized on the sale. The original cost of the asset must have been:   

A. $260,000.

 

B. $262,000.

 

C. $280,000.

 

D. $156,000.

x – $138,000 = $142,000 – $18,000; x = $262,000

 

 

 

109.The entry to record amortization on a copyright would include:   

A. A debit to amortization expense.

 

B. A debit to accumulated amortization.

 

C. A debit to copyright.

 

D. A credit to amortization expense.

 

 

 

 

110.Coca-Cola’s famous name printed in distinctive typeface is an example of:   

A. A trademark.

 

B. A patent.

 

C. A copyright.

 

D. Goodwill.