Question 1

Martin Company purchases a machine at the beginning of the year at a cost of $60,000. The machine is depreciated using the straight-line method. The machine's useful life is estimated to be 4 years with a $5,000 salvage value. The book value of the machine at the end of year 4 is:

Accepted Answer

A)  $13,750.
B)  $0.
C)  $55,000.
D)  $30,000.
E)  $5,000.F) A) and C)
G) B) and D)

Question 2

Intangible assets do not include:

Accepted Answer

A)  Trademarks.
B)  Copyrights.
C)  Patents.
D)  Land held as an investment.
E)  Goodwill.F) A) and B)
G) A) and C)

Question 3

Wickland Company installs a manufacturing machine in its production facility at the beginning of the year at a cost of $87,000. The machine's useful life is estimated to be 5 years, or 400,000 units of product, with a $7,000 salvage value. During its second year, the machine produces 84,500 units of product. Determine the machines' second year depreciation under the straight-line method.

Accepted Answer

A)  $20,880.
B)  $17,400.
C)  $16,900.
D)  $16,000.
E)  $18,379.F) C) and D)
G) A) and C)

Question 4

Natural resources may be reported under either plant assets or their own separate category on the balance sheet.

Accepted Answer

A) True 
 B)False

Exam 10: Plant Assets, Natural Resoures, and Intangibles

Natural resources may be reported under either plant assets or their own separate category on the balance sheet.

Correct Answer
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Martin Company purchases a machine at the beginning of the year at a cost of $60,000. The machine is depreciated using the straight-line method. The machine's useful life is estimated to be 4 years with a $5,000 salvage value. The book value of the machine at the end of year 4 is:

Correct Answer
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Correct Answer
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Intangible assets do not include:

Correct Answer
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Exam 10: Plant Assets, Natural Resoures, and Intangibles

Natural resources may be reported under either plant assets or their own separate category on the balance sheet.

Correct AnswerverifiedShow Answer

Martin Company purchases a machine at the beginning of the year at a cost of $60,000. The machine is depreciated using the straight-line method. The machine's useful life is estimated to be 4 years with a $5,000 salvage value. The book value of the machine at the end of year 4 is:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Intangible assets do not include:

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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