Drag the words into the correct boxes. Be sure you are satisfied with your answers before clicking on the check button. Your first attempt is what saves to the gradebook. account. What vacant land is acquired, expenditures for clearing, draining, filling, and grading should be charged to the account. The cost of paving, fencing, and lighting a new company parking lot is charged to a The book value of a plant asset is obtained by subtracting from the of the plant asset. The method of computing depreciation expense results in an equal amount of periodic depreciation throughout the service life of the plant asset. The declining-balance method of computing depreciation is known as an depreciation method. The declining-balance method of computing depreciation expense involves multiplying a Straight-line Land Improvement GAAP book value by percentage. Straight-line Material Ordinary repairs which maintain operating efficiency and expected productive life are called . Additions and improvements are costs incurred to increase the operating efficiency, productive capacity, or expected useful life and are referred to as Declining Stated In recording the purchase of a business, goodwill should be recorded for the excess of over the of the net assets acquired. Cost Constant The terms of a bond issue are set forth in a formal legal document called a bond interest rate must be equal to the straight-line and effective-interest methods of amortization, the . Unsecured bonds that are issued against the general credit of the borrower are called interest rate. A method of amortizing bond discount or premium that allocates an equal amount each period is the method is required under bonds. If bonds are issued at face value (par), it indicates that the method. When there is a difference between the Indenture Capital Expenditures Accumulated Depreciation Land Debenture Market Revenue Expenditures Cost Effective-interest Accelerated Fair Value