True or false If you sell an asset for more than its salvage value you can record a loss for the difference?
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True or false
If you sell an asset for more than its salvage value you can record a loss for the difference?
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- What are two motivations to sell an asset, even if the current value is less than what you paid for it?When a destroyed business asset is replaced, which of the following is true? a. The excess replacement cost over the carrying value of the destroyed asset is capitalized. b. The replacement cost is capitalized and the carrying value is deductible as loss. c. The replacement cost is capitalized and the carrying value is disregarded. d. Answer not givenDepreciation is a process of asset valuation where an asset's book value (cost less accumulated depreciation) often approximates it fair value. Do you agree or disagree? Explain why or why not.
- Which of the following is NOT a way to dispose of an asset? a.Sell it.b.Exchange it for another asset.c.Discard or scrap it.d.All of these are ways to dispose of an asset.What is an impairment loss? A ) The amount by which the carrying amount of an asset exceeds the book value B ) The amount by which the carrying amount of an asset exceeds the recoverable amount C ) The difference between the fair value of an asset and the net realisable value of the asset D ) The amount by which the market value of an asset exceeds the net present valueWhich of the following payback methods assumes that the asset acquired may not last its estimated life. A. Traditional payback B. Present value payback C. Bail-out payback D. Payback reciprocal
- Which of the following situations indicates that an asset is impaired?a. The net book value of the asset is less than the asset’s estimated future cash flows.b. The net book value of the asset is more than the asset’s estimated future cash flows.c. The fair market value of the asset is less than the asset’s net book value.d. The fair market value of the asset is more than the asset’s net book value.true or false If an uninsured asset is destroyed by fire, the firm suffers a loss measured by the asset's estimated salvage valueQ1 Which of the following statement (s) is (are) true? (i) When no future economic benefits are no longer expected to flow from an intangible asset, such asset should be derecognized the financial statements of an organization. (ii) When an intangible asset is derecognized, the carrying amount should be written off as a loss in the profit or loss statement at the date of retirement of the asset. (iii) When an intangible asset is sold, the difference between the carrying amount and consideration received is recognized in the profit or loss statement at the date of the sale. (iv) Consideration to be received in the event of sale of an intangible asset should only be cash Select one: a. (ii) and (iv) only b. (i) and (ii) only c. (i) and (iv) only d. (i), (ii) and (iii) only
- 1)If an asset value recovers after an impairment loss has been recognized for the asset, what amount of restoration of that loss is recognized?a.The difference between the original cost and the new recoverable amount.b.The difference between the original loss and the new recoverable amount.c.The difference between the carrying amount and the new recoverable amount.d.None of the recovered value is recognized.2) Occasionally, events occur that change an asset's value after purchase. Which of the following is true regarding these changes in value?a.Increases in asset value are recognized.b.Reductions in asset value are recognized.c.Both decreases and increases are recognized.d.Neither decreases nor increases are recognized.(a) When would the disposal of a long-term asset result in no gain or loss? (b) When would the disposal of a long-term asset result in a gain? (c) When would the disposal of a long-term asset result in a loss?A loss on disposal occurs when:A a depreciable asset is sold for less than its undepreciated balance at the time of sale, and less than its purchase price B depreciable asset is sold for more than its undepreciated balance at the time of sale, but less than its purchase price C a depreciable asset is sold for more than its undepreciated balance at the time of sale, and more than its purchase price