Question : 51.Which of the following assets not subject to depreciation and : 1237699

 

 

51.Which of the following assets is not subject to depreciation and whose usefulness does not decline over time?   

A. Patents.

 

B. Copyrights.

 

C. Land.

 

D. Coal mine.

 

 

 

 

52.Harvard Company purchased equipment having an invoice price of $11,500. The terms of sale were 2/10, n/30, and Harvard paid within the discount period. In addition, Harvard paid a $160 delivery charge, $185 installation charge, and $931 sales tax. The amount recorded as the cost of this equipment is:   

A. $11,845.

 

B. $12,776.

 

C. $11,615.

 

D. $12,546.

($11,500 × .98) + $160 + $185 + $931 = $12,546

 

 

 

53.Land and a warehouse were acquired for $890,000. What amounts should be recorded in the accounting records for the land and for the warehouse if an appraisal showed the estimated values to be $400,000 for the land and $700,000 for the warehouse?   

A. $400,000 for land; $490,000 for warehouse.

 

B. $323,960 for land; $566,040 for warehouse.

 

C. $400,000 for land; $700,000 for warehouse.

 

D. $190,000 for land; $700,000 for warehouse.

$400,000 + $700,000 = $1,100,000; ($400,000/$1,100,000) × $890,000 = 36.4% × $890,000 = $323,960; $700,000/$1,100,000) = 63.6% × $890,000 = $566,040

 

 

 

54.Land is purchased for $456,000. Additional costs include a $30,300 fee to a broker, a survey fee of $3,400, $2,750 to construct a fence, and a legal fee of $12,500. What is the cost of the land?   

A. $456,000.

 

B. $486,300.

 

C. $502,200.

 

D. $504,950.

$456,000 + $30,300 + $3,400 + $12,500 = $502,200

 

 

 

55.Yale Company purchased equipment having an invoice price of $21,500. The terms of sale were 2/10, n/30, and Yale paid within the discount period. In addition, Yale paid a $320 delivery charge, $350 installation charge, and $1,183 sales tax. The amount recorded as the cost of this equipment is:   

A. $21,070.

 

B. $21,500.

 

C. $21,740.

 

D. $22,923.

($21,500 × .98) + $320 + $350 + $1,183 = $22,923

 

 

 

56.Which of the following is a capital expenditure?   

A. Sales tax paid in conjunction with the purchase of office equipment.

 

B. Monthly rent of a delivery truck.

 

C. Monthly fuel costs for a truck owned by the company.

 

D. Small expenditures to acquire long-lived assets, such as $13 to purchase a wastebasket.

 

 

 

 

57.The cost of a new windshield wiper on a delivery vehicle would be classified as:   

A. A capital expenditure.

 

B. A revenue expenditure.

 

C. Part of the cost of goods sold.

 

D. An unusual and infrequent expense.

 

 

 

 

58.Which of the following should not be treated as a revenue expenditure?   

A. Delivery costs on newly purchased equipment.

 

B. Annual fire insurance premiums on plant and equipment.

 

C. Repair to an elevator of a five year old building.

 

D. The purchase of a pencil sharpener for $10 used in an office.

 

 

 

 

59.Which of the following is not a capital expenditure?   

A. Advertising expenditures to introduce a new product line.

 

B. Sales tax paid in conjunction with the purchase of new machinery.

 

C. Installation of elevators to replace escalators.

 

D. An amount paid to acquire a patent with a remaining life of only three years.

 

 

 

 

60.The application of the matching principle to depreciation of plant and equipment can best be described as:   

A. The matching of the book value of an asset with its market value.

 

B. Offsetting the revenue of an accounting period with the estimated decline in market value of plant and equipment during the accounting period.

 

C. Offsetting revenue of an accounting period with the portion of the cost of plant and equipment estimated to have been used up during the accounting period.

 

D. The matching of the depreciation expense reported in the income statement for an accounting period with the accumulated depreciation reported in the balance sheet.

 

 

 

 

 

Place your order
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more