Listed below are several items and phrases associated with depreciation, depletion, and amortization. Pair each item from
Question:
Listed below are several items and phrases associated with depreciation, depletion, and amortization. Pair each item from List A with the item from List B (by letter) that is most appropriately associated with it.
List A List B 1. Depreciation a. Cost allocation for natural resource 2. Service life b. Accounted for prospectively c. When there has been a significant decline in value 3. Depreciable base 4. Activity-based methods d. The amount of use expected from plant and equipment and finite-life intangible assets e. Estimates service life in units of output f. Cost less residual value g. Cost allocation for plant and equipment 5. Time-based methods 6. Double-declining balance 7. Group method 8. Composite method 9. Depletion h. Does not subtract residual value from cost i. Accounted for in the same way as a change in estimate j. Aggregates assets that are similar k. Aggregates assets that are physically unified 1. Cost allocation for an intangible asset m. Estimates service life in years 10. Amortization 11. Change in useful life 12. Change in depreciation method 13. Write-down of asset
Step by Step Answer:
1 Depreciation Cost allocation for plant and equipment is known as depreciation which satisfies matching concept It is distribution of cost of asset l...View the full answer
Intermediate Accounting
ISBN: 978-1260481952
10th edition
Authors: J. David Spiceland, James Sepe, Mark Nelson, Wayne Thomas
Related Video
Depreciation of non-current assets is the process of allocating the cost of the asset over its useful life. The cost of the asset includes the purchase price, any additional costs incurred to bring the asset to its current condition and location, and any other costs that are directly attributable to the asset. The useful life of the asset is the period over which the asset is expected to be used by the company. To calculate the depreciation, companies use different methods such as straight-line, declining-balance, sum-of-the-years\'-digits, units-of-production, and group depreciation. The chosen method will depend on the type of asset, the company\'s accounting policies, and the accounting standards that are applicable. The straight-line method allocates an equal amount of the asset\'s cost over its useful life, while the declining-balance method calculates depreciation at a fixed rate, typically double the straight-line rate, but the amount of depreciation decreases over time. The sum-of-the-years\'-digits method is similar to the declining-balance method, but the rate of depreciation is calculated using a fraction that is based on the useful life of the asset. It\'s important to note that the depreciation expense will be recorded on the company\'s income statement and the accumulated depreciation will be recorded on the company\'s balance sheet. This will decrease the value of the asset on the balance sheet over time.
Students also viewed these Business questions
-
Listed below are several terms and phrases associated with current liabilities. Pair each item from List A (by letter) with the item from List B that is most appropriately associated withit. List A...
-
Listed below are several terms and phrases associated with long-term debt. Pair each item from List A with the item from List B (by letter) that is most appropriately associated with it. List A List...
-
Listed below are several terms and phrases associated with inventory measurement. Pair each item from List A with the item from List B (by letter) that is most appropriately associated withit. List A...
-
Q2. (20 pts) Product structure tree of product A is given in the following table: B(2) A C(3) D(3) E(4) F(5) E(6) a. How many components of each kind to produce 5 product A? b. Draw operation process...
-
Use the data in MEAP93.RAW to answer this question. (i) Estimate the model math10 = (0 + (1 log (expend) + (2 lnchprg + u, and report the results in the usual form, including the sample size and...
-
Labor data for making one liter of finished product in Kozlov Paints are as follows. (1) Pricehourly wage rate 14.00, payroll taxes 0.80, and fringe benefits 1.20. (2) Quantityactual production time...
-
A quantum system has three energy levels, so three wavelengths appear in its emission spectrum. The shortest observed wavelength is \(248 \mathrm{~nm}\); light with a \(414 \mathrm{~nm}\) wavelength...
-
Alpha Graphics Company, Inc. was organized on January 1, 2014. At the end of the first 6 months of operations, the trial balance contained the accounts shown below. Analysis reveals the following...
-
Overhead Variance (Over- or Underapplied), Closing to Cost of Goods Sold At the end of the year, Ilberg Company provided the following actual information: Overhead Direct labor cost $423,600 532,000...
-
The European Union fined Sotheby's auction house more than 20 million for operating (along with rival auction house Christie's) a price-fixing cartel (see "The Art of Price Fixing" in MyEconLab,...
-
Belltone Company made the following expenditures related to its 10-year-old manufacturing facility: 1. The heating system was replaced at a cost of $250,000. The cost of the old system was not known....
-
On January 1, 2021, the general ledger of TNT Fireworks included the following account balances: During January 2021, the following transactions occurred: Jan. 1 Purchased equipment for $19,500. The...
-
Sue is an administrative assistant working in the research branch of a small, nonprofit management development firm located in Minneapolis, MN. The research branch is responsible for developing new...
-
Consider the following functions: Y = 2|cos(x)\, Y2 = -2|sin(x)\, Y3 = 1+ |cos (x)], Y41|sin(x)\, Write MATLAB script to plot all the functions in the same axes in the interval -2 x 2.
-
Why is "Tidal wave" car wash a good business; Include revenue, ticker symbol, and net income in the reasoning.
-
What are some recommendations that would improve their business operations and reduce customer complaints?
-
Calculate the magnitude of the electric field at one corner of a square 2.12 m on a side if the other three corners are occupied by 5.25x10-6 C charges. Express your answer to three significant...
-
What would you do to ensure that workers at all levels perform their duties with alertness?
-
Using facts in the chapter for Ganado Europe, assume the exchange rate on January 2, 2006, in Exhibit 11.4 dropped in value from $1.2000/ to $0.9000/ rather than to $1.0000/. Recalculate Ganado...
-
Is that Yelp review real or fake? The article A Framework for Fake Review Detection in Online Consumer Electronics Retailers (Information Processing and Management 2019: 12341244) tested five...
-
How should consolidated financial statements be reported this year when statements of individual companies were presented last year?
-
How should consolidated financial statements be reported this year when statements of individual companies were presented last year?
-
Simms Corp. controlled four domestic subsidiaries and one foreign subsidiary. Prior to the current year, Simms Corp. had excluded the foreign subsidiary from consolidation. During the current year,...
-
Suppose the North Carolina University system tests the idea that computerization of statistics classes increases student performance in the courses. If the computers are found to have a beneficial...
-
M. Handy is a self-employed painter who earned $32,400 last year. Her FICA tax rate is 15.3% of her earnings. How much FICA tax did she pay?
-
Using the same iThe Shouldice Hospital specializes in hernia operations. They have a special procedure that not only has a much higher rate of long-term success than other hospitals, but also allows...
Study smarter with the SolutionInn App