1. Calculate straight-line depreciation, including part year:

2. Calculate book value of a plant asset:

3. Explain why depreciation is added to net income to compute cash from operating activity:

4. Identify items of cost (versus expense) in the acquisition of a plant asset:

5. Compute gain/loss on the sale of a plant asset:

6. Compute gain/loss when an asset is retired:

7. Cite the GAAP rule for recognizing costs of research and development expenditures:

8. Compute the acquisition cost of a plant asset:

9. Understand the relationship between cost, accumulated depreciation, gain/loss, and cash received On a sale of a plant asset:

10. Identify current liabilities in a list of liability accounts:

Answer rating: 100% (QA)

1 Straightline depreciation is the simplest and mostoftenused technique in which the company estimates the salvage value of the asset at the end of the period during which it will be used to generate ... View the full answer