Quiz Ch 07 – Fully Depreciated Plant Assets
Financial Accounting
Thomas, Tietz, and Harrison
12th Edition
What happens to a plant asset when it is fully depreciated?
What happens to a plant asset when it is fully depreciated?
What is the formula for calculating the gain or loss on the exchange of plant assets?
Which statement about cost expensing and capitalization is incorrect?
What is the impact on expenses and net income in the year of the error if a company capitalizes a cost that should have been expensed?
What information is NOT required when recording a nonmonetary exchange of two plant assets?
When a company exchanges an old machine for a new machine and pays cash, resulting in a gain on exchange, which accounts will be debited in the journal entry recorded by the owner of the old machine?
What is the appropriate journal entry when equipment with a historical cost of $100,000 and accumulated depreciation of $100,000 is junked?
What is the appropriate journal entry when equipment with a historical cost of $70,000 and accumulated depreciation of $15,000 is junked and no cash is received upon disposal?
What are the costs associated with a delivery vehicle that should NOT be capitalized?
What are the reporting requirements for plant assets on the balance sheet according to U.S. Generally Accepted Accounting Principles and International Financial Reporting Standards?