M8-1 (Static) Classifying Long-Lived Assets and Related Cost Allocation Concepts LO8-1, 8-3, 8-6 For each of the following long-lived assets, select its nature and the related cost allocation concept. (1) Tractors (2) Land in use Asset (3) Timber tract (4) Warehouse (5) New engine for old machine (6) Operating license (7) Production plant (8) Patent (9) Silver mine (10) Land held for sale Nature Cost Allocation Concept M8-2 (Algo) Computing and Evaluating the Fixed Asset Turnover Ratio LO8-1 The following information was reported by Young's Air Cargo Service for 2017: Net fixed assets (beginning of year) $1,970,000 Net fixed assets (end of year) 2,350,000 Net operating revenues for the year 3,370,000 Net income for the year 1,510,000 Compute the company's fixed asset turnover ratio for the year. (Round your answer to 2 decimal places.) Fixed asset turnover ratio M8-3 (Static) Identifying Capital Expenditures and Expenses LO8-2 For each of the following transactions, select the correct type of expenditure. Transactions (1) Purchased a patent, $4,300 cash. (2) Paid $10,000 for monthly salaries. (3) Paid cash dividends, $20,000. (4) Purchased a machine, $7,000; gave a long-term note. (5) Paid three-year insurance premium, $900. (6) Paid for routine maintenance, $200, on credit. (7) Paid $400 for ordinary repairs. (8) Paid $6,000 for improvements that lengthened the asset's productive life. (9) Paid $20,000 cash for addition to old building. Type of Expenditure