period.structures, due to passage of time.one where equal payments are made at the end of each payment period starting from the firstthe decrease in the value of property such as machinery, cars equipments, building or otheris one where payment periods extend forever or in which the periodic payments continue indefinitely.the worth of a property as shown in the accounting records of an enterprise.the length of time at which property can be operated at a profit.the price of a property when sold for junk.the total amount invested on the property until the property is put into operation.payment occurs later than at the beginning of each period.

An annuity is a set of equal monetary payments made at equidistant periods in time, such as monthly,…

Answered: period. structures, due to passage of…

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter7: Fixed Assets, Natural Resources, And Intangible Assets

Section: Chapter Questions

Problem 7.1.2P: Allocate payments and receipts to fixed asset accounts The following payments and receipts are...

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1. When the useful life of an asset is more accurately defined in terms of how much it is used rather than the passage of time, the _____ method is used to calculate depreciation. A. straight-line B. sum-of-the-years' digits C. units-of-production D. declining-balance 2.The name given to tax rules for getting back or recovering through depreciation deductions the cost of property used in a trade or business, or to produce income is known as the _____ Accelerated Cost Recovery System. A. Municipal B. Modified C. Minimum D. Maximum
depreciation is a. the decrease in value of a fixed asset due to ear and tear, passage of time, or obsolescence b. wages reach the point, the deductions or withholding) will stop c. record expenses when they occur and not when they are paid, as well as record income when its earned d. report income in the year it is received and deduct expenses in the year paid
Assume a company pays delinquent property taxes totaling $3,000 as part of a new land purchase. The journal entry to record this payment should include a credit to “Cash” and a debit to: Land Property Taxes Payable Property Tax Expense Accumulated Depreciation Loss on Purchase of Property
Assets used to generate revenue for a period longer than one year are called :Select one A. Fixed assets B. Long-term assets C. Contra assets D. Depreciation
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
Place T or F in front of each of the following statements. 1. The straight-line method of depreciation is based on the assumption that depreciation expense can be regarded as a constant function of time. 2. Plant assets should be written down (below cost) when their market value has declined temporarily. 3. The accounting profession has developed specifically recommended procedures for recording appraisal increases with respect to plant assets. 4. An asset's cost minus its accumulated depreciation equals its book value. 5. The sum-of-the-years'-digits method of depreciation ignores salvage value in the computation of an asset's depreciable base. 6. When using the double-declining balance method of determining depreciation, a declining percentage is applied to a constant book value. 7. The book value of plant assets initially declines more rapidly under decreasing-charge methods than under the straight-line method. 8. Accounting depreciation is computed by…
The following expenditures and receipts are related to land, land improvements, and buildings acquired for use in a business enterprise. The receipts are enclosed in parentheses. (a) Money borrowed to pay building contractor (signed a note) $(294,600 ) (b) Payment for construction from note proceeds 294,600 (c) Cost of land fill and clearing 10,250 (d) Delinquent real estate taxes on property assumed by purchaser 7,170 (e) Premium on 6-month insurance policy during construction 11,100 (f) Refund of 1-month insurance premium because construction completed early (1,850 ) (g) Architect’s fee on building 26,350 (h) Cost of real estate purchased as a plant site (land $208,600 and building $51,900) 260,500 (i) Commission fee paid to real estate agency 9,500 (j) Installation of fences around property 4,120 (k) Cost of razing and removing building 10,230 (l) Proceeds from salvage of…
The following expenditures and receipts are related to land, land improvements, and buildings acquired for use in a business enterprise. The receipts are enclosed in parentheses. (a) Money borrowed to pay building contractor (signed a note) $(294,600 ) (b) Payment for construction from note proceeds 294,600 (c) Cost of land fill and clearing 10,250 (d) Delinquent real estate taxes on property assumed by purchaser 7,170 (e) Premium on 6-month insurance policy during construction 11,100 (f) Refund of 1-month insurance premium because construction completed early (1,850 ) (g) Architect’s fee on building 26,350 (h) Cost of real estate purchased as a plant site (land $208,600 and building $51,900) 260,500 (i) Commission fee paid to real estate agency 9,500 (j) Installation of fences around property 4,120 (k) Cost of razing and removing building 10,230 (l) Proceeds from salvage of…
3. Ahmed Company bought a piece of land and decided to sell it in the future at a profit as the value of the land will increase. In which financial statement this land should be reported and which part specifically? Do we need to record depreciation on land
What is the correct process for determining depreciation expense for partial periods? A: The straight line method should be used for the first year of the assets life. B: The salvage value should be equal to last year's depreciation amount. C: No depretiation should be expensed in the year of acquisition. D: Depreciation for physical years should be broken up between fiscal years.
Allocate payments and receipts to fixed asset accounts The following payments and receipts are related to land, land improvements, and buildings acquired for use in a wholesale apparel business. The receipts are identified by an asterisk. Instructions Determine the increases to Land, Lind Improvements. and Building.
During the current year, Alanna Co. had the following transactions pertaining to its new office building. A. What should Alanna Co. record on its books for the land? The total cost of land includes all costs of preparing the land for use. The demolition cost of the old building is added to the land costs, and the sale of the old building scrap is subtracted from the land cost. B. What should Alanna Co. record on its books for the building?

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