118.
ABO purchased a truck at the beginning of 2018 for $140,000. They sold the truck at the
end of 2019 for $95,000. If the expected useful life of the truck was six years with a
residual value of $20,000 and ABO uses straight-line depreciation, which of the following
is true regarding the entry to record the sale of the truck?
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119.
Oregon Adventures purchased equipment for $80,000. They sold the equipment at the end
of three years for $45,000. If the expected useful life of the equipment was seven years
with a residual value of $10,000, and they use straight-line depreciation, which of the
following is true regarding the entry to record the sale of the equipment?
120.
Which of the following intangible assets is not amortized?
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121.
Which of the following intangible assets may or may not be amortized depending on
whether it has a finite or an indefinite life?
122.
Which of the following intangible assets has an indefinite useful life?
123.
Which of the following amortization methods is most commonly used?
124.
Which of the following statements is
true
regarding the amortization of intangible assets?
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125.
Bricktown Exchange purchases a copyright for $50,000. The copyright has a remaining
legal life of 25 years, but only an expected useful life of five years with no residual value.
Assuming the company uses the straight-line method, what is the
amortization expense
for the first year?
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126.
Bricktown Exchange purchases a copyright for $50,000. The copyright has a remaining
legal life of 25 years, but only an expected useful life of five years with no residual value.
Assuming the company uses the straight-line method, what is the
carrying value
at the
end of the first year?
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127.
Bricktown Exchange purchases a copyright for $50,000. The copyright has a remaining
legal life of 25 years, but only an expected useful life of five years with no residual value.
Assuming the company uses the straight-line method, what is the
carrying value
at the
end of the second year?
128.
Berry Co. purchases a patent on January 1, 2018, for $40,000 and the patent has an
expected useful life of five years with no residual value. Assuming Berry Co. uses the
straight-line method, what is the
amortization expense
for the year ended December 31,
2019?
129.
Berry Co. purchases a patent on January 1, 2018, for $40,000 and the patent has an
expected useful life of five years with no residual value. Assuming Berry Co. uses the
straight-line method, what is the
carrying value
of the patent on December 31, 2019?
130.
Gains on the sale of long-term assets for cash:
131.
Losses on the sale of long-term assets for cash:
132.
Return on assets is calculated as:
133.
Return on assets is equal to:
134.
The balance sheet of Paradise Pizza reports total assets of $1,500,000 and $1,700,000 at
the beginning and end of the year, respectively. Net income and sales for the year are
$240,000 and $2,000,000, respectively. What is Paradise Pizza’s return on assets?
135.
The balance sheet of Paradise Pizza reports total assets of $1,500,000 and $1,700,000 at
the beginning and end of the year, respectively. Net income and sales for the year are
$240,000 and $2,000,000, respectively. What is Paradise Pizza’s profit margin?
136.
The balance sheet of Paradise Pizza reports total assets of $1,500,000 and $1,700,000 at
the beginning and end of the year, respectively. Net income and sales for the year are
$240,000 and $2,000,000, respectively. What is Paradise Pizza’s asset turnover?
137.
The balance sheet of Purdy’s BBQ reports total assets of $800,000 and $900,000 at the
beginning and end of the year, respectively. Net income and sales for the year are $85,000
and $1,700,000, respectively. What is Purdy’s return on assets?
138.
The balance sheet of Purdy’s BBQ reports total assets of $800,000 and $900,000 at the
beginning and end of the year, respectively. Net income and sales for the year are $85,000
and $1,700,000, respectively. What is Purdy’s profit margin?
139.
The balance sheet of Purdy’s BBQ reports total assets of $800,000 and $900,000 at the
beginning and end of the year, respectively. Net income and sales for the year are $85,000
and $1,700,000, respectively. What is Purdy’s asset turnover?
140.
The balance sheet of Purdy’s BBQ reports total assets of $800,000 and $900,000 at the
beginning and end of the year, respectively. The return on assets for the year is 20%. What
is Purdy’s net income for the year?
141.
The balance sheet of Hidden Valley Farms reports total assets of $450,000 and $550,000
at the beginning and end of the year, respectively. Net income and sales for the year are
$100,000 and $800,000, respectively. What is Hidden Valley’s return on assets?
142.
The balance sheet of Hidden Valley Farms reports total assets of $450,000 and $550,000
at the beginning and end of the year, respectively. Net income and sales for the year are
$100,000 and $800,000, respectively. What is Hidden Valley’s profit margin?
143.
The balance sheet of Hidden Valley Farms reports total assets of $450,000 and $550,000
at the beginning and end of the year, respectively. Net income and sales for the year are
$100,000 and $800,000, respectively. What is Hidden Valley’s asset turnover?
144.
The balance sheet of Hidden Valley Farms reports total assets of $450,000 and $550,000
at the beginning and end of the year, respectively. The return on assets for the year is
10%. What is Hidden Valley’s net income for the year?
145.
Recognition of impairment for long-term assets is required if book value exceeds:
146.
The amount of impairment loss is the excess of book value over:
147.
Accounting for impairment losses:
148.
In testing for impairment of an operational asset, an impairment loss is required if the:
149.
Wilson Inc. owns equipment for which it originally paid $70 million and has recorded
accumulated depreciation on the equipment of $12 million. Due to adverse economic
conditions, Wilson’s management determined that it should assess whether an impairment
should be recognized for the equipment. The estimated future cash flows to be provided
by the equipment total $60 million, and its fair value at that point totals $50 million. Under
these circumstances, Wilson:
150.
Leonard’s Jewelry owns a patent with a carrying value of $50 million. Due to adverse
economic conditions, Leonard’s management determined that it should assess whether an
impairment should be recognized for the patent. The estimated future cash flows to be
provided by the patent total $43 million, and its fair value at that point totals $35 million.
Under these circumstances, Leonard:
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151.
C-Stop reports the following information at year-end:
Book
Value
Estimated
Cash Flows
Fair
Value
Building
$500,000
$380,000
$360,000
Patent
$35,000
$40,000
$38,000
Copyright
$40,000
$38,000
$39,000
Machine
$100,000
$120,000
$85,000
Based on the above information, what is the total amount of impairment loss that C-Stop
should record at year end?