A gain or loss on disposal of a plant asset is determined by comparing the a. replacement
Question:
A gain or loss on disposal of a plant asset is determined by comparing the
a. | replacement cost of the asset with asset's original cost | |
b. | book vlaue of the asset with the asset's original cost | |
c. | original cost of the asset with the proceeds received from its sale | |
d. | book value of the asset with the proceeds received from its sale |
3 points
QUESTION 23
When an aste is sold, a gain occurs when the
a. | sale price exceeds the book value of the asset sold | |
b. | sale price exceeds the original cost of the asset sold | |
c. | book value exceeds teh sle price of the asset sold | |
d. | sale price exceeds the depreciate cost of the asset sold |
3 points
QUESTION 24
The book value of a plant asste is the difference between the
a. | replacement cost of the asset and its historical cost | |
b. | cost of the asset and the amount of depreciation expense for the year | |
c. | cost of the asset and the accumulated depreciation to date | |
d. | proceeds received from the sale of the asset and its original cost |
3 points
QUESTION 25
A company sells a plant asset that originally cost $150,000 for $50,000 on december 31, 2001. The accumulated depreciation accoutn had a balance of $60,000 after the current year's depreciation of $15,000 had been recorded. the company should recognize a
a. | $100,000 loss on disposal | |
b. | $40,000 gain on disposal | |
c. | $40,000 loss on disposal | |
d. | $25,000 loss on disposal |
3 points
QUESTION 26
A truck costing $12,000 and on which $9,000 of accumulated depreciation has been recorded was discarded as having no value. The entry to record this event would include a
a. | gain of $3,000 | |
b. | loss of $3,000 | |
c. | credit of accumulated depreciation for $9,000 | |
d. | credit of accumu;ated depreciation fro $12,000 |
3 points
QUESTION 27
a truck that cost $12,000 and onw hich $9,000 of accumulated depreciation has been recorded was disposed for $2,000 cash. The entry to record this event would include a
a. | gain of $1,000 | |
b. | loss of $1,000 | |
c. | credit to truck account for $3,000 | |
d. | credit to accumulated depreciation for $9,000 |
3 points
QUESTION 28
A truck costing $35,000 was destroyed when its engine caught fire. At the date of the fire, the accumulated depreciation on the truck was $16,000. an insurance check for $40,000 was received based on the replacement cost of the truck. the entry to record the insurance proceeds and the disposition of the truck will include a
a. | Gain on disposal of $5,000 | |
b. | credit to the truck account of $19,000 | |
c. | credit to the accumulated depreciation account for $16,000 | |
d. | gain on disposal of $21,000 |
Introduction To Federal Income Taxation In Canada
ISBN: 9781554965021
33rd Edition
Authors: Robert E. Beam, Stanley N. Laiken, James J. Barnett