FNSACC321-322-421 Quiz 14 part 2 of 2

Question 10 Depreciation is: Oa. the loss in market value of an asset. Ob. the allocation of a long-term asset's cost to an expense account over the asset's life. OC. an increase in an asset's value over time or usage. d. none of the above. A Click Submit to complete this assessment.

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Question 37 The process of transferring the cost of an asset to an expense account over time is called A) write-off B) write-down C) approciation D) depreciation E) all of the above F) none of the above Question 41 The method of determining depreciation that yields successive reductions in the periodic depreciation charge over the estimated life of the asset is the A) units-of-production method B) double-declining-balance mathod C) straight-line method D) time-valuation method

Question 3 Poppy Traders owns the following assets on 31 December 2021: 1. Ford EcoSport-CS 23 TM GP: Purchased on 30/6/2019 for R250 000. 2. Packaging machine: Purchased on 1/4/2020 for R300 00. Poppy Traders writes off depreciation as follows: Vehicles at 20% per annum using the diminishing balance method. Machinery at 25% per annum using the straight-line method.

All amounts paid to acquire a long lived-asset and to get it ready for its intended use are referred to as OA. net book value OB. the cost of an asset OC salvage value O D. immediate expenses BEE

How do we calculate the Amount of Loss?

Depreciation expense under the invenroty system is a. Based on cost minus residual value b. Basically a FIFO approach to depreciable asset accounting c. The result of applying a depreciation rate to the original cost d. A measure of the change in the value of the depreciable asset

Saved ☆ 009 Help Save & Exit Submit To calculate a gain or loss on the sale of an asset, the proceeds from the sale are reduced by which of the following? Multiple Choice О Tax basis of the property Selling expenses О Amount realized О Tax basis of the property and selling expenses All of these choices are correct.

How should an expenditure for an ordinary repair to factory equipment be recorded? Question 10 options: Debited to accumulated depreciation. Debited to an asset account but not depreciated over future years. As an expense in the period incurred. Debited to an asset account and depreciated over the current and future years.

Of the following, what information is required to calculate depreciation allowances under MACRSGDS? I. Useful life II. First cost. III. Salvage value. IV. Property class a. II and IV only. b. II, III, and IV only. c. I, II, and IV only. d. I, II, III, and IV.

Of the following, what information is required to calculate depreciation allowances under straight-line depreciation? I. Useful life II. First cost III. Salvage value IV. Property class. a. I and II only. b. II and IV only. c. I, II, and III only d. I, II, III, and IV.

B1

Your staff person has provided you with the following journal entry for January 20x1 depreciation. The monthly deprecation is supposed to be $100.00. What is wrong with this entry?

Hint: From a ->d: Create tables and fill in the answer. A table can be similar as below: Depreciation Depreciation Acc. Total year 1 Adjusted Depreciation Basis Assets Purchased Cost Date year 2 Delivery car 7/1/20 2/14/19 2/1/19 1/1/19 1/1/19 25k Furniture Equipment 20k 100k Warehouse 50k Land 150k Assets Sold date Sold price Adjusted Gain/Loss Characters basis recognized Delivery car 12/31/20 Furniture Equipment Warehouse Land 15k 12/31/20 12/31/20 12/31/20 12/31/20 10k 20k 55k 200k

A fixed asset with a cost of $31,021 and accumulated depreciation of $27,918.90 is sold for $5,273.57. What is the amount of the gain or loss on disposal of the fixed asset? Oa. S2,171.47 loss Ob. $3,102.10 loss Oc. S2,171.47 gain Od. S3,102.10 gain