An assets is classified as a fixed asset when ______________ a. It has life less than one year b. It is used in the normal business operations and has life more than one year c. It is bought for long term for resale in future d. It is one which has to be depreciated every year

An assets is classified as a fixed asset when ______________ a. It has life less than one year b. It is used in the normal business operations and has life more than one year c. It is bought for long term for resale in future d. It is one which has to be depreciated every year

Name: An assets is classified as a fixed asset when ______________a.It has l
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Description: An assets is classified as a fixed asset when ______________a.It has life less than one yearb.It is used in the normal business operations and has life more than one yearc.It is bought for long term for resale in futured.It is one which has to be dep

SWFT Comprehensive Vol 2020

43rd Edition

ISBN:9780357391723

Author:Maloney

Publisher:Maloney

Chapter8: Depreciation, Cost Recovery, Amortization, And Depletion

Section: Chapter Questions

Problem 7BCRQ

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Similar questions

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Effect of depreciation on net income Einstein Construction Co. specializes in building replicas of historic houses. Bree Andrus. president of Einstein Construction, is considering the purchase of various items of equipment on July 1. 20Y2. for $300,000. The equipment would have a useful life of five years and no residual value. In the past, all equipment has been leased. For tax purposes, Bee is considenng depreciating the equipment by the straight-line method. She discussed the matter with her CPA and learned that although the straight-line method could be elected, it was to her advantage to use the Modified Accelerated Cost Recovery System (MACRS) for tax purposes. She asked for your advice as to which method to use for tax purposes. What factors would you present for Bree’s consideration in the selection of a depreciation method?
9-An assets is classified as a fixed asset when ______________ a. It is bought for long term for resale in future b. It is used in the normal business operations and has life more than one year c. It has life less than one year d. It is one which has to be depreciated every year
Which of the following is not a requirement for an asset to be depreciable?a. It must have a life longer than 1 year b. It must have a basis(initial purchase plus installation cost) greater than $1,000 c. It must be held with the intent to produce income d. It must wear out or get used up.
An asset has values of the PW during its economic life as shown in the table below. When should the asset be abandoned without replacement? Year PW 1 $14,408 2 $18,856 3 $21,466 4 $21,061 5 $19,614 a. year 3 b. year 5 c. year 4 d. year 1
which of the following statements is not correct? 1) generally accepted accounting principles require that the original cost of a long-term asset continue to appear in the asset account until the disposition of the asset. 2)The book value of a long-term asset is reduced each year as depreciation is recorded Building and trucks are examples of long -term assets 3)Salvage value is computed by subtracting the accumulated depreciation from the cost of a long-term asset.
c) In practice, would you expect the depreciation expense for a non-current asset to be overestimated or underestimated? Explain why this is the case. d) Oak Ltd purchased a machine for £40,000. At the end of its useful life of four years, the amount received on sale was £4,000. When the asset was purchased,the business received two estimates of the likely residual value of the asset. These were: (a) £8,000 and (b) zero. Show the annual depreciation expenses over the four years and the total depreciation expenses for the asset under each of the two estimates. The straight-line method should be used to calculate the annual depreciation expenses.