Preview (14 of 45 pages)

Preview Extract

Chapter 9
Long-Lived Assets
Multiple Choice Questions
1. Which one of the following should be classified as land on the balance sheet?
a. A shed that houses the company’s equipment.
b. Mineral rights representing gold in the soil
c. Two tracts of property that houses the company’s backup computer site
d. Sidewalks and driveways which lead to the company’s office building
Answer: C
2. Which of the following long-lived assets is not amortized or depreciated to an expense?
a. Equipment use in production of inventory goods
b. Land improvements
c. Land
d. Company computers replaced every two years
Answer: C
3. A company which complains that although their income is quite satisfactory, cash is not
available for dividends because of the high cost of replacing fixed assets in operating in an
economic environment where:
a. inflation is non-existent.
b. the balance sheet value of long-lived assets is more than their replacement value.
c. the prices of long-lived assets have been decreasing over an extended period of time.
d. expenditures required to replace long-lived assets are greater than depreciation expense.
Answer: D
4. Which one of the following actions will help solve a cash shortage problem?
a. Issue common stock in exchange for plant assets

b. Recognize depreciation expense
c. Purchased long-lived asset by issuing long-term debt
d. Retire plant assets at salvage value
Answer: D
5. The purpose of recording depreciation expense is to:
a. provide cash necessary to replace plant assets when they are used up.
b. record the balance sheet amount of plant assets at replacement value.
c. match expenses with revenues using a reasonable systematic method.
d. gain a better understanding of estimating the extraction of natural resources.
Answer: C
6. Monroe Co. purchased a tract of land paying $100,000 in cash and assumed an existing
mortgage of $60,000. The municipal tax bill disclosed an assessed valuation of $180,000. The
amount Monroe should record as land connected with this acquisition is:
a. $100,000.
b. $160,000.
c. $180,000.
d. $200,000.
Answer: B
7. The process of allocating the cost of plant and equipment over the time period of which
they are used is referred to as:
a. depreciation.
b. depletion.
c. amortization.
d. deferred costs.
Answer: A

8. The process of expensing the cost of a gold mine as gold is withdrawn is referred to as:
a. amortization.
b. depletion.
c. depreciation.
d. decomposition.
Answer: B
9. The process of expensing the cost of patents over an extended period of years is referred to
as:
a. classification.
b. depletion.
c. depreciation.
d. amortization.
Answer: D
10. Accumulated depreciation is an account which:
a. adjusts plant and equipment so that its balance sheet value approximates its replacement
cost.
b. is a long-term liability.
c. is equal to total depreciation expense recorded and decreases total plant and equipment.
d. reduces intangible assets.
Answer: C
11. An increase in accumulated depreciation:
a. increases total assets.
b. decreases total assets.
c. decreases the current ratio.
d. increases the quick ratio.

Answer: B
12. During extended periods of rising prices of plant and equipment, the amount required to
replace long-lived assets is typically:
a. less than total accumulated depreciation of those assets.
b. equal to the sum of all the depreciation recognized on those assets.
c. less than the balance sheet value of those assets.
d. greater than the sum of total depreciation expense recognized on those assets.
Answer: D
13. On January 1, a company purchased land with a usable building on it for $270,000. At the
time of purchase, the fair market values of the land and building were $120,000 and
$200,000, respectively. The gain from the purchase of the land and building is:
a. $0.
b. $50,000.
c. $80,000.
d. $320,000.
Answer: A
14. Equipment with a cost of $22,000 and accumulated depreciation of $15,000 was retired
with a gain of $1,000. The cash received from the disposition of equipment is:
a. $7,000.
b. $8,000.
c. $6,000.
d. $14,000.
Answer: B
15. Moss Company purchased a building costing $800,000 on January 1, 2010. Moss is
depreciating the building over 80 years using the straight-line method with no salvage value.

The economic life of the building is expected to be 40 years. As a result of Moss’s accounting
procedure, its 2010:
a. earnings per share is understated and debt/equity ratio is overstated.
b. earnings per share is understated and debt/equity ratio is understated.
c. earnings per share is overstated and debt/equity ratio is overstated.
d. earnings per share is overstated and debt/equity ratio is understated.
Answer: D
16. The Favre Company made the following expenditures related to its building:

The amount of the preceding expenditures that should be immediately expensed is:
a. $0.
b. $1,700.
c. $34,700.
d. $19,700.
Answer: B
17. Depreciation is an expense that does not use cash during the period in which it is
recognized. When did (will) the cash outflow associated with the asset occur?
a. When the asset is retired
b. There is no cash outflow associated with depreciation or the asset.
c. When the replacement cost of the asset increases
d. When the asset was acquired
Answer: D

18. The balance in accumulated depreciation on January 1 and December 31 is $15,000 and
$19,000, respectively, during a year in which no assets were disposed. Depreciation expense
during the year is:
a. $19,000.
b. $15,000.
c. $4,000.
d. $34,000.
Answer: C
19. On January 1, Comicon Corp. purchased land with a usable building on it for $300,000.
At the time of purchase, the fair market values of the land and building were $100,000 and
$150,000, respectively. Comicon depreciates the building using the straight-line method over
20 years with an expected $24,000 residual value. The annual depreciation expense on the
building is:
a. $0.
b. $5,000.
c. $7,800.
d. $10,800.
Answer: C
20. On January 1, Scion Co. purchased land with a usable building on it for $210,000. At the
time of purchase, the fair market values of the land and building were $80,000 and $160,000,
respectively. Scion assigned the entire purchase cost of $240,000 to land. Scion should
depreciate the building using the straight-line method over 20 years with an expected zero
residual value. As a result of Scion’s treatment of the purchase of land and building, its
current net income is:
a. understated by $10,500.
b. understated by $7,000.
c. overstated by $7,000.

d. overstated by $10,500.
Answer: C
21. The balance in accumulated depreciation on January 1 and December 31 is $12,000 and
$9,000, respectively, during a year in which an asset with a cost of $4,000 and net book value
of $0 was retired. Depreciation expense for the current year is:
a. $9,000.
b. $3,000.
c. $1,000.
d. $7,000.
Answer: C
22. Which one of the following depreciation methods will typically result in the smallest
amount of current taxes paid during the early periods of an asset's life?
a. 150% declining balance method.
b. Units of production method.
c. Double-declining-balance method.
d. Straight-line method.
Answer: C
23. Which one of the following depreciation methods will typically result in the smallest
earnings per share during the early periods of an asset's life?
a. 150% declining balance method.
b. Units of production method.
c. Double-declining-balance method.
d. Straight-line method.
Answer: C

24. Sandeep Inc. uses double-declining-balance depreciation for an asset with a 4-year life
expectancy and no salvage value. Depreciation expense for the second year of the asset's life
is calculated by:
a. [2 x Book Value]/4
b. [2 x (Cost – Salvage Value]/4
c. [(2 x Book Value)/4] – Accumulated Depreciation
d. [2 x Cost]/4
Answer: A
25. Kristin, Inc. depreciates its plant assets over a 10-year life with a 10% salvage value.
Using straight-line depreciation, which calculation will Kristin use during year 2 of the asset's
life?
a. 10% x (Cost – Salvage Value)
b. (Cost – Salvage Value)/10 x 10%
c. Book Value x 10%
d. Book Value x [10% – Salvage Value]
Answer: A
26. Forgetting to record depreciation expense during 2010l:
a. understates the debt/equity ratio.
b. understates the current ratio.
c. overstates the debt/equity ratio.
d. overstates the current ratio.
Answer: A
27. If the straight-line method of depreciation of an asset with a 5-year life expectancy and no
salvage value is used, then the percentage of cost that is recognized as depreciation expense
for the first two years of the asset's life is, respectively,
a. 25% and 25%.

b. 40% and 20%.
c. 40% and 40%.
d. 20% and 20%.
Answer: D
28. On January 1, 2010, Lane Company made a $12,000 expenditure on a fully depreciated
machine. The expenditure increased the expected life of the new machine for two years until
December 31, 2011. Lane uses straight-line depreciation with no salvage value. However,
Lane erroneously expensed this capital expenditure. As a result of this error,
a. 2010 income is overstated by $3,000 and 2011 income is understated by $3,000.
b. 2010 income is understated by $6,000 and 2011 income is overstated by $6,000.
c. 2010 income is understated by $6,000 and 2011 income is overstated by $3,000.
d. 2010 income is understated by $6,000 and 2011 income is correctly stated.
Answer: B
29. A machine was purchased on January 1 for $50,000. The machine has an estimated useful
life of 10 years with a salvage value of $2,000. Under the double-declining-balance,
depreciation expense for each of the first two years is, respectively,
a. $12,000 and $12,000.
b. $10,000 and $8,000.
c. $12,000 and $9,500.
d. $12,500 and $12,500.
Answer: B
$50,000 x 2/10 and ($50,000 - $10,000) x 2/10
30. A machine was purchased on January 1 for $100,000. The machine has an estimated
useful life of 5 years with a salvage value of $10,000. Under the double-declining-balance
method, depreciation expense for each of the first two years is, respectively,
a. $45,000 and $22,500.

b. $40,000 and $24,000.
c. $45,000 and $ 27,500.
d. $22,500 and $ 22,500.
Answer: B
2/5 x $100,000 and 2/5 x $60,000
31. Failure to record depreciation expense during a year:
a. understates net income.
b. overstates total assets.
c. overstates total debt.
d. overstates contributed capital.
Answer: B
32. A machine was purchased on January 1 for $100,000. The machine has an estimated
useful life of 4 years with a salvage value of $20,000. Under the straight-line method,
accumulated depreciation at the end of year 2 is:
a. $25,000
b. $22,500
c. $50,000
d. $40,000
Answer: D
($100,000 - $20,000)/4 x 2
33. Natural resource costs:
a. include rights, privileges, and benefits of an economic resource that have no physical
existence.
b. are depreciated.
c. include the cost of the equipment used to extract the natural resource.

d. include the cost of acquiring the rights to extract natural resources.
Answer: D
34. A machine was purchased on January 1 for $100,000. The machine has an estimated
useful life of 5 years with a salvage value of $20,000. Under the straight-line method, the
book value and the accumulated depreciation of the machine at the end of year two is
respectively,
a. $60,000 and $40,000
b. $68,000 and $32,000
c. $40,000 and $60,000
d. $48,000 and $32,000
Answer: B
35. Which one of the following will impact the amount of depreciation expensed throughout
the life of plant assets?
a. The amount of capitalized cost.
b. Maintenance costs throughout the asset’s useful life.
c. The expected cost of a replacement asset.
d. The current market value.
Answer: A
36. Which one of the costs below should be included as part of the cost of land?
a. Razing an old building.
b. Cost of a building permit.
c. Cost of driveways.
d. Shrubs and trees with limited lives.
Answer: A
37. When companies construct their own long-lived assets, all costs required to get the asset
into operating condition must be:

a. expensed immediately.
b. included in the long-lived asset’s cost.
c. recognized as a maintenance cost.
d. treated as a cost necessary to maintain the plant asset’s current level of productivity.
Answer: B
38. Salvage value is:
a. a method of depreciating plant assets.
b. the dollar amount that can be recovered when the asset is sold, traded, or scrapped.
c. an asset’s current estimated market value.
d. a physical obsolescence condition.
Answer: B
39. Which one of the following is not one of the questions asked when accounting for longlived assets?
a. Over what period of time should this cost be allocated?
b. What dollar amount should be included in the capitalized cost of the long-lived asset?
c. At what rate should this cost be allocated?
d. How much will a replacement asset cost?
Answer: D
40. Which of the following is the least problematic factor to determine when preparing to
calculate depreciation?
a. useful life.
b. estimated salvage value.
c. technical obsolescence.
d. acquisition cost.
Answer: D

41. Once a company establishes that an estimated useful life of a plant asset has changed
significantly:
a. the plant asset must be disposed.
b. the change must be made for the current and future years.
c. a correcting journal entry must be made.
d. the previous year's financial statements must be corrected.
Answer: B
42. The calculation of a ‘depreciation base’ requires subtracting:
a. the salvage value from the asset’s book value.
b. the asset’s book value from its original cost.
c. the asset’s salvage value from its capitalized cost.
d. accumulated depreciation from the asset’s original cost.
Answer: C
43. The units of production method of depreciation:
a. allocates the cost of the long-lived asset based on an activity.
b. allocates an equal amount of plant asset cost to each accounting period.
c. is an accelerated method.
d. is used when an asset has no salvage value.
Answer: A
44. During 2009, Erie Inc. developed a new process for packaging products. Erie paid its
employees $450,000 over the past five years in developing this process. On January 1, 2009,
Erie paid $12,000 to register the packaging patent. The company believes the patent will
produce profits for 10 years. The patent has a 17-year legal life. How much amortization
expense should be recognized during 2009?
a. $27,118
b. $46,200

c. $1,200
d. $647
Answer: C
$12,000/10
45. One primary reason management may choose a particular depreciation method is:
a. to save cash for the replacement of the plant asset.
b. to avoid violation of debt covenants tied to net income.
c. to decrease the cash flows of the company.
d. to hide judgment errors that managers have made during the accounting period.
Answer: B
46. Once a plant asset becomes fully depreciated, the:
a. asset may no longer be used.
b. asset may still be used.
c. asset should be retired.
d. cost of the asset must be removed from the accounting records.
Answer: B
47. When a plant asset is sold, its original cost and its:
a. market value must be removed from the accounting records.
b. accumulated depreciation must be removed from the accounting records.
c. salvage value must be expensed immediately.
d. related maintenance costs must be transferred to the income statement immediately.
Answer: B
48. When a plant asset is traded in for a similar asset, the valuation of the new plant asset
should be:
a. at the original cost of the old asset.

b. at the fair market value of the asset given up, or the asset received, whichever is more
clearly evident.
c. at the replacement cost of the old asset.
d. at the value at which the new asset received was carried in the accounting records of the
manufacturer.
Answer: B
49. Intangible assets differ from plant assets in that they:
a. are consumed in the current accounting period.
b. include prepaid expenses that extend beyond the current accounting period.
c. have no physical existence.
d. are matched against the revenue in the period the related revenue is recognized.
Answer: C
50. Which one of the following costs would be capitalized as an ‘organizational cost’?
a. Goodwill
b. Underwriting a company's first stock issuance
c. Copyrights
d. None of the above
Answer: D
51. Jeter Inc. acquired machinery on January 1, 2004 at a cost of $55,000. The machinery
was depreciated over five years using the straight line method and a salvage value of $2,000.
In 2010 the machinery was sold for $3,000. The income statement for 2010 will reflect which
of the following:
a. Gain of $1,000
b. Gain of $3,000
c. Loss of $52,000
d. No gain or loss

Answer: A
52. On December 1, Douglas Corp. purchased a tract of land for $285,000 to be used as a
factory site. An old unusable building on the land was razed (torn down), and the salvaged
materials from the demolition were sold. These cash expenditures and receipts and other costs
incurred during December are as follows:

What would be the balance in Douglas’s Land account on its December 31 balance sheet?
a. $285,000
b. $337,500
c. $340,500
d. $331,000
Answer: B
$285,000 + $51,000 - $8,000 + $7,000 + $2,500 = $337,500
53. Land and a building were purchased for $240,000. A reliable market value of the land is
$75,000 and for the building, $225,000. What are the respective separate costs assigned to the
land and building?
a. $75,000 and $225,000
b. $75,000 and $165,000
c. $60,000 and $180,000
d. $80,000 and $160,000
Answer: C
Land: $60,000; Building: $180,000
54. On January 1, Eagle Co. paid $65,000 for a new truck. It was estimated that the truck
would be driven 300,000 miles during the next 5 years, at which time it would have a salvage
value of $10,000. At the end of the first and second years, the odometer registered 55,000 and

115,000 miles, respectively. What is the book value of the truck using straight-line
depreciation at the end of the second year?
a. $47,000
b. $43,000
c. $43,533
d. $56,000
Answer: B

55. On July 31, 2010, equipment is purchased for $66,000 with a 4-year life expectancy and
salvage value of $5,000. If the double-declining-balance method is used, calculate
depreciation expense for the year ending December 31, 2010.
a. $13,750
b. $12,708
c. $33,000
d. $31,000
Answer: A
($66,000 x (2/4) x (5/12) = $13,750
Answer: A
56. On February 1, 2008, James Co., which uses straight-line depreciation, purchased
equipment for $88,000 with a useful life of 12 years and $4,000 salvage value. On February
1, 2012, the equipment was sold for $56,000. Which of the following would James recognize
as a result of this disposition?
a. $7,000 loss
b. $4,000 loss

c. $4,000 gain
d. No gain or loss
Answer: B
Expense = ($88,000 – $4,000)/12 x 4 years = $28,000
Loss = $56,000 – [$88,000 – $28,000] = $4,000
57. On January 1, Mondale Co. paid $92,000 for a new truck. It was estimated that the truck
would be driven 200,000 miles during the next 8 years, at which time it would have a salvage
value of $7,000. At the end of the first three years, the odometer registered 27,000, 53,000,
and 78,000 miles, respectively. What is the book value of the truck using the activity method
of depreciation at the end of the third year?
a. $67,150
b. $24,850
c. $51,850
d. $58,850
Answer: D

58. Farmdale Company purchased three assets for $400,000. These assets have fair market
values as follows:

If you were Farmdale’s accountant, how much of the lump sum purchase would you allocate
to the inventory?
a. $100,000
b. $120,000

c. $200,000
d. $80,000
Answer: D
($50,000 / $250,000) x $400,000 = $80,000
59. Farmdale Company purchased three assets for $400,000. These assets have fair market
values as follows:

If you were Farmdale’s accountant, how much of the lump sum purchase would you allocate
to the land?
a. $75,000
b. $120,000
c. $200,000
d. $80,000
Answer: B
($75,000 / $250,000) x $400,000 = $120,000
60. Farmdale Company purchased three assets for $400,000. These assets have fair market
values as follows:

If you were Farmdale’s accountant, how much of the lump sum purchase would you allocate
to the equipment?
a. $100,000
b. $120,000
c. $200,000

d. $80,000
Answer: C
($125,000 / $250,000) x $400,000 = $200,000
61. The following items represent common post acquisition expenditures incurred on
equipment.
A. An overhaul to increase useful life of the equipment
B. Cost of a muffler to reduce equipment noise
C. Lubrication service
D. Costs of redesign to increase output
Identify which of these items are considered to be betterments.
a. A only
b. A, B, and D
c. A and D
d. A and B
Answer: C
62. The following items represent common post acquisition expenditures incurred on
equipment.
A. Replacement of defective parts
B. Rewiring costs to increase operating speed
C. Painting costs
D. Repair of the major circuitry of the equipment
Identify which of these items are considered to be maintenance items.
a. A and C
b. C only
c. A, B, and C

d. A, C, and D
Answer: D
63. Rio Grande Company purchased equipment on January 1, 2010 for $75,000. The
estimated useful life of the equipment is 5 years, the salvage value is $10,000, and the
company uses the double-declining balance method to depreciate fixed assets. Which of the
following journal entries would Rio Grande record if the equipment is scrapped after three
years?

Answer: B
Assuming that Rio Grande Company kept the equipment for its entire five-year estimated
useful life, the depreciation schedule on the equipment would be as follows.

* Because the equipment's book value can’t drop below its estimated salvage value,
depreciation expense for 2012 can’t exceed $6,200.

Answer: B
64. Rio Grande Company purchased equipment on January 1, 2010 for $75,000. The
estimated useful life of the equipment is 5 years, the salvage value is $10,000, and the
company uses the double-declining balance method to depreciate fixed assets. How much
depreciation would Rio Grande record for the fourth year of the equipment’s use?
a. $6,480
b. $6,200
c. $5,616
d. $6,000
Answer: B
Assuming that Rio Grande Company kept the equipment for its entire five-year estimated
useful life, the depreciation schedule on the equipment would be as follows.

* Because the equipment's book value can’t drop below its estimated salvage value,
depreciation expense for 2012 can’t exceed $6,200.
Answer: B
65. Rio Grande Company purchased equipment on January 1, 2010 for $75,000. The
estimated useful life of the equipment is 5 years, the salvage value is $10,000, and the
company uses the double-declining balance method to depreciate fixed assets. Which of the
following journal entries would Rio Grande record if the equipment is scrapped after five
years?

Answer: C
66. Rio Grande Company purchased equipment on January 1, 2010 for $75,000. The
estimated useful life of the equipment is 5 years, the salvage value is $10,000, and the
company uses the double-declining balance method to depreciate fixed assets. Which of the
following journal entries would Rio Grande record if the equipment is sold for $17,000 after
three years?

Answer: D

Assuming that Rio Grande Company kept the equipment for its entire five-year estimated
useful life, the depreciation schedule on the equipment would be as follows.

* Because the equipment's book value can’t drop below its estimated salvage value,
depreciation expense for 2012 can’t exceed $6,200.
Answer: D
67. Rio Grande Company purchased equipment on January 1, 2009 for $75,000. The
estimated useful life of the equipment is 5 years, the salvage value is $10,000, and the
company uses the double-declining balance method to depreciate fixed assets. Which of the
following would be included in the journal entry that Rio Grande would record at the end of
the fifth year, if the equipment and $19,000 cash are traded for a dissimilar fixed asset with a
FMV of $25,000?
a. A credit to Fixed Assets for $25,000.
b. A credit to Equipment for $10,000.
c. A credit to Gain on Disposal of Equipment for $4,000.
d. A debit to Loss on Disposal of Equipment for $4,000.
Answer: D
Matching Questions
1. For each account listed in 1 through 12 below, identify which reporting section (a through
d) each would appear on a company’s financial statements. You may use each letter more
than once or not at all.

_____ 1. Depreciation expense
_____ 2. Accumulated depreciation
_____ 3. Betterments
_____ 4. Oil reserve
_____ 5. Land
_____ 6. Organizational costs
_____ 7. Amortization expense
_____ 8. Total amortization since inception
_____ 9. Gain on sale of patent
_____ 10. Copyright
_____ 11. Patents
_____ 12. Goodwill
Answers:
1. d
2. a
3. a
4. c or a
5. a
6. d
7. d
8. b

9. d
10. b
11. b
12. b
2. For each transaction numbered 1 through 6 below, identify its effects on the accounting
equation by selecting from the effects listed in a through f. You may use each letter more than
once or not at all.

____ 1. Equipment is purchased by incurring a long-term mortgage payable and paying the
balance in cash
____ 2. Paid for transportation of equipment shipped from the vendor to our plant
____ 3. Paid for speeding ticket received while transporting the equipment to the
manufacturing plant
____ 4. Depreciated the equipment during the first year of use
____ 5. Paid for lubrication and periodic tune ups of the equipment
____ 6. Sold the equipment, receiving more money than its book value
Answer: 1. e 2. f 3. a 4. a 5. a 6. b
3. For each transaction numbered 1 through 5 below, identify in which account listed in a
through d it would be reported. You may use each letter more than once or not at all.

_____ 1. Freight charges related to the acquisition costs of a production machine
_____ 2. Interest costs incurred during the construction period of a building built by a
company for its own use
_____ 3. Costs paid to clear land
_____ 4. Annual painting costs of an office building
_____ 5. Sales taxes paid related to a machine purchased
Answer: 1. c 2. b 3. a 4. d 5. c
4. For each cost that appears in items 1 through 6 below, select the account in which it would
be included and reported from those listed in a through c. You may use more than one answer
for each cost. If the cost is not capitalized, place an X in the space provided.

_____ 1. Installation costs of a special attachment to newly acquired equipment
_____ 2. Freight costs for shipping the equipment into our manufacturing facility
_____ 3. Costs of repairing a hole knocked in the wall during installation of new equipment
_____ 4. Interest costs on a mortgage loan used to purchase a newly acquired building
_____ 5. Property taxes paid on land for the current year on which a new building was erected
_____ 6. Training session to teach faculty how to use computer projection equipment recently
installed in classrooms
Answer: 1. c 2. c 3. x 4. x 5. x 6. x
5. Select the method of depreciation listed in a through c that is best for each purpose listed in
items 1 through 5.

1. _______ Creates the largest net income in the early years of life
2. _______ Erratic due to unpredictable sales levels
3. _______ Creates the smallest taxable income in the early years of life
4. _______ Technological competitive changes are rapid
Answer: 1. a 2. b 3. c 4. c
6. For each transaction numbered 1 through 5 below, identify which effect(s) (a through d)
that each transaction would have on the current and debt/equity ratios. You may use each
letter more than once or not at all. Some transactions have two answers.

____ 1. Equipment is purchased by incurring a long-term note payable and paying the
balance in cash
____ 2. Paid for transportation of equipment shipped from a supplier
____ 3. Depreciated the equipment during the first year of use
____ 4. Paid for lubrication and periodic maintenance of the equipment
____ 5. Sold the equipment, receiving more money than its book value
Answer: 1. a, d 2. a 3. d 4. a, d 5. b, c
7. For each transaction numbered 1 through 6 below, identify which accounting treatment—
capitalized or expensed—should be used to properly account for the transactions. You may
use each letter more than once or not at all.

______ 1. Freight costs on production equipment in transit
______ 2. Sales tax on equipment purchase

______ 3. Damaged during installation and repair costs
______ 4. Interest paid on construction loan during the building period
______ 5. Survey costs by contractor
______ 6. Construction insurance to cover theft or vandalism during building construction
Answer: 1. C 2. C 3. E 4. C 5. C 6. C
Short Problems
1. Lincoln Co. purchased a piece of property (land and building) at a tax sale for $110,000.
Reliable estimates of the fair market values of the land and building are $34,000 and $70,000,
respectively. What is the gain that Lincoln Co. should record from this advantageous
purchase?
Answer: $0 (No gain is realized at time of purchase.)
2. On December 1, Dominican Corp. purchased a tract of land for $325,000 to be used as a
factory site. An old unusable building on the land was razed (torn down), and the salvaged
materials from the demolition were sold. These cash expenditures and receipts and other costs
incurred during December are as follows:

Calculate the balance in Dominican’s Land account on its December 31 balance sheet.
Answer: $325,000 + $11,000 - $5,000 + $3,000 + $1,000 = $335,000
3. Land and a building were purchased for $90,000. A reliable market value of the land is
$40,000 and for the building, $80,000. What are the separate costs assigned to the land and
building?
Answer: Land: $30,000; Building: $60,000
4. Apple Inc. purchased a used pickup truck with an advertised price of $18,900 for $17,000
cash. While Jeff, the CEO, was driving the truck to get supplies, he was stopped by a
highway patrol woman and received a $50 speeding ticket and a warning for a

nonfunctioning brake light. Jeff had failed to notice when this problem when he purchased
the truck. If Jeff knew about the brake light condition, he would have paid only $16,500 for
the car. The cost, not under warranty, of replacing the brake light was $50. Calculate the cost
to be capitalized to the truck account.
Answer: $17,000
5. Arnez Company purchased a building and equipment for $110,000. Although a reliable
market value of the building could not be determined, the equipment's market value is
$70,000. What are the separate costs assigned to the building and equipment?
Answer: Equipment is assigned its fair market value of $70,000 and the remaining $40,000 is
assigned to the cost of the building.
6. On January 1, Hampton Company paid $48,000 for a new delivery truck. It was estimated
that the truck would be driven 100,000 miles during the next 5 years, at which time it would
have a salvage value of $3,000. During the first and second years, the odometer registered
22,000 and 40,000 miles, respectively. How much is accumulated depreciation using the
activity (miles driven) method at the end of year 2?
Answer:
Depreciation expense = ($48,000 – $3,000)/100,000 = $0.45 per mile
Year 1: $0.45 x 22,000 = $9,900
Year 2: $0.45 x (40,000 - 22,000) = $8,100
Accumulated depreciation = $18,000
7. On January 1, 2008, Blackwell Company paid $88,000 for a new delivery truck. It was
estimated that the truck would be driven 300,000 miles during the next 6 years, at which time
it would have a salvage value of $7,000. At the end of the first and second years, the
odometer registered 48,000 and 88,000 miles, respectively. Show how the plant asset would
appear in Blackwell Company’s balance sheet at December 31, 2009 assuming the company
uses the activity method depreciation.
Answer:

8. Harvey Ltd. purchased land and building in exchange for 50,000 shares of its stock that is
trading on the New York Stock Exchange at $20 a share. Although the market values of the
purchased assets are unknown, the current assessed value of the land is $300,000 and the
building is $600,000. How much is assigned to the land and to the building?
Answer:
Total purchase = $20 x 50,000 = $1,000,000
Land = ($300,000/$900,000) x $1,000,000 = $333,333
Building = ($600,000/$900,000) x $1,000,000 = $666,667
9. On January 1, Bisbee Co. paid $80,000 for a new truck. It was estimated that the truck
would be driven 400,000 miles during the next 8 years, at which time it would have a salvage
value of $8,000. At the end of the first and second years, the odometer registered 45,000 and
97,000 miles, respectively. Calculate the book value of the truck using straight-line
depreciation at the end of the second year.
Answer:

10. On January 1, Marriott Company paid $80,000 for a copy machine. It was estimated that
the machine would produce 200,000 copies over the next 8 years, at which time it would have
a salvage value of $8,000. During the first and second years, the copies totaled 24,000 and
51,000, respectively. Calculate accumulated depreciation using the double-declining-balance
method at the end of year two.
Answer:
Year 1: [(2 x $80,000)/8] = $20,000

Year 2: [(2 x ($80,000 – $20,000))/8] = $15,000
Accumulated = $20,000 + $15,000 = $35,000
11. On January 1, Weston Company paid $88,000 for a copy machine. It was estimated that
the machine would produce 1,000,000 copies over the next 8 years, at which time it would
have a salvage value of $8,000. During the first and second years, the copies totaled 180,000
and 300,000, respectively. Calculate depreciation expense using the activity method for each
of the first two years.
Answer:
Year 1: [(180,000/1,000,000) x $80,000] = $14,400
Year 2: [(300,000/1,000,000) x $80,000] = $24,000
12. On January 1, equipment is purchased for $55,000 with an 8-year life expectancy and
salvage value of $5,000. If the double-declining-balance method is used, calculate the book
value of the equipment at the end of year 2.
Answer:

13. On January 1, equipment is purchased for $40,000 with an 20-year life expectancy and
salvage value of $4,000. If the double-declining-balance method is used, how much
depreciation expense is recorded for the first year?
Answer: Year 1 = [(2 x $40,000)/20)] = $4,000
14. On September 30, 2010, equipment is purchased for $50,000 with a 4-year life
expectancy and salvage value of $2,000. If the double-declining-balance method is used,
calculate depreciation expense for the year ending December 31, 2010.
Answer: ($50,000 x 2)/4 x (3/12) = $6,250
15. Zack Co. incurred the following costs related to equipment during November 2009.
1. Purchase equipment for $90,000, terms 3/15, net 45. Paid within 15 day.

2. Had the equipment installed and paid the installer $2,000.
3. Paid the freight bill for the truck that delivered the equipment for $1,000.
4. Advertised a new product that will be produced by the new equipment, $3,400.
5. Sales taxes paid on the equipment amounted to $3,800.
Calculate the cost of the equipment.
Answer: $90,000 – $2,700 + $2,000 + $1,000 + $3,800 = $94,100
16. Carson Co. purchased a printer for $10,000, for which it paid $1,000 a month for 10
months. Carson had the option of paying $9,500 cash for the printer but chose the delayed
payment plan. It cost Carson $80 to transport the printer to its place of business and $200 for
installing and initial timing adjustments to the printer. Calculate the cost of the printer.
Answer: $9,500 + $80 + $200 = $9,780
17. On January 1, Barton Co. purchased land with a usable building on it for $425,000. At the
time of purchase, the fair market values of the land and building were $170,000 and
$340,000, respectively. What is the cost Barton should allocate to land?
Answer: ($170,000/$510,000) x $425,000 = $141,667
18. On January 1, Summers Co. purchased equipment with a 10-year life and zero salvage
value for $900,000. Summers uses the straight-line method on its financial statements and
double-declining-balance method on its income tax returns. By what amount does the tax
deduction for depreciation exceed depreciation expense on Summers’s income statements for
each of the first two years?
Answer:

19. Farmdale Company’s President purchased an extremely used automobile on November 1
by paying $2,000. He immediately had it towed to his mechanic who overhauled the auto in
order to get the car ready to be safely driven. The cost of the tow was $40 and the initial

overhaul was $1,500. While driving from his mechanic’s garage, he ran over a nail that
punctured a tire and cost $35 to repair. Calculate the cost of the auto.
Answer: $2,000 + $40 + $1,500 = $3,540
20. On April 1, Tarpon Co. made the following expenditures on its printing press:

The renovation increased the expected life and the attachment increased the productivity of
the press. What are the total expenditures capitalized to the printing press?
Answer: $8,000 + $2,000 + $1,000 + $1,000 + $3,000 = $15,000
21. On April 1, 2004, Cardot Co., which uses straight-line depreciation, purchased equipment
for $60,000 with a useful life of 7 years and $4,000 salvage value. On April 1, 2008, the
equipment was sold for $30,000. What gain should Cardot recognize as a result of this
disposition?
Answer:
Expense = ($60,000 – $4,000)/7 x 4 years = $32,000
Gain = $30,000 – [$60,000 – $32,000] = $2,000
Use the information that follows concerning Harrahs, Inc. to answer problems 22 through 24.
Harrahs Corporation purchased a dump truck at the beginning of 2008 at a cost of $60,000.
The truck had an estimated life of 5 years and an estimated residual value of $5,000. On
January 1, 2010, the company made major repairs of $3,000 to the truck that extended its life
2 more years. Starting with 2010, the truck has a remaining life of 5 years. The company uses
the straight-line depreciation method.
22. How much is the book value of the truck to be reported on the balance sheet at the end of
2009?
Answer:
Annual depreciation: ($60,000 – $5,000)/5 = $11,000

Book value at 12-31-2009: $60,000 – $11,000 – $11,000 = $38,000
23. What amount should be recorded as depreciation expense each year starting in 2010?
Answer:
Annual depreciation: ($60,000 – $5,000)/5 = $11,000
Book value at 12-31-2009: $60,000 – $11,000 – $11,000 = $38,000
2010 depreciation: ($38,000 + $3,000 – $5,000)/5 = $7,200
24. If Harrahs sells the truck at the end of 2010 for $20,000 cash, how much gain or loss
would be recognized?
Answer:

25. Calculate depreciation expense for each of the first two full years of life for an airplane
with a cost of $600,000, residual value of $40,000, and an estimated life of 4 years under the
double-declining-balance depreciation method.
Answer:
Year 1: $600,000 x 2/4 = $300,000
Year 2: ($600,000 – $300,000) x 2/4 = $150,000
26. Courtney Corp. has significant stock that can be issued by the company. The managers
are planning to sell the stock for a large profit by fraudulently inflating reported earnings.
They plan to sell the stock after current earnings are reported, then leave for the carnival in
Brazil. To accomplish their devious plans, they purchased inventory for $800,000 and
charged the inventory purchase to equipment that is being depreciated using the straight-line
method with a life of 8 years and no salvage value. If beginning and ending inventories were
correctly stated and a full year's depreciation is recognized on the equipment, what is the
amount of Courtney’s current net income overstatement?

Answer: $800,000 – ($800,000/8) = $700,000
27. Raymond Corporation is a new business that recycles consumption leftovers. The
investors in Raymond’s stock, expecting losses in the early stages of business, are impressed
with its early net incomes resulting in the ballooning of its stock price to $32 a share. During
the second year of operations, Raymond’s reported net income of $1,300,000. However, a
few months later, independent auditors reported existence of accounting irregularities
concerned with the capitalization of $3 million dollars of expenditures to Raymond’s land
account that should have been expensed. What is the appropriately adjusted net income for
the second year of operations?
Answer: $1.3 M – $3.0 M = $1.7 million loss
28. The balance in accumulated depreciation on January 1 and December 31 is $60,000 and
$70,000, respectively, during a year in which an asset with a cost of $20,000 and net book
value of $5,000 was sold for $3,000. Calculate the amount of depreciation expense for the
current year.
Answer: $70,000 + [$20,000 – $5,000] – $60,000 = $25,000
Use the information that follows to answer problems 29 through 31.
Laney Inc. and Monroe Company each ordered a new computer on January 1, 2009. The cost
of each computer was $3,500. The economic life expectancy of each computer is three years
with a $500 expected salvage value. During the current year Laney and Monroe experienced
identical operating events with the only difference being that Laney used the straight-line
depreciation method, while Monroe used the double-declining-balance depreciation method.
Both became disenchanted with their computers during the year due to the introduction of a
new generation of computers, and on December 31, 2009, each sold the computer for $800.
29. Calculate Laney’s depreciation expense and loss (gain) from the disposal of the computer.
Answer:

30. Calculate Monroe’s depreciation expense and loss (gain) from the disposal of the
computer.
Answer:

Depreciation expense: ($3,500 x 2/3) = $2,333
Loss from the disposal of the computer: $800 – ($3,500 – 2,333) = ($367)
31. Indicate how the current year's net income statements for Laney and Monroe would differ.
Answer:
Laney:
Depreciation expense using the straight-line method = (1/3) x ($3,500 – $500) = $1,000
Loss from the disposal of the computer: $800 – ($3,500 – $1,000) = ($1,700)
Total income statement effect = ($1,000) + ($1,700) = ($2,700)
Monroe:
Depreciation expense: ($3,500 x 2/3) = $2,333
Loss from the disposal of the computer: $800 – ($3,500 – $2,333) = ($367)
Total income statement effect = ($2,333) + ($367) = ($2,700)
The bottom line net incomes for both companies would be the same. However, Laney has a
$1,333 greater operating net income that is neutralized by a $1,333 greater loss from the
disposal of the computer, which is included in other revenues and expenses.
32. Mondova Corporation began operations on January 1. Below is Mondova’s current net
income statement and December 31 balance sheet calculated using straight-line depreciation.

Note 1: Equipment was purchased on January 1. Straight-line depreciation method was used
with an estimated economic life of 5 years.
A. Determine the estimated salvage value of the equipment being depreciated using the
straight-line method.
B. Prepare an income statement and balance sheet in the same format as presented above
assuming that Mondova Corporation uses the double-declining-balance depreciation method.
The equipment has an estimated economic life of 5 years.
C. Calculate and compare Mondova’s December 31 current ratio, debt/equity ratio, and debt
to assets ratio using the financial statements constructed using the straight-line and doubledeclining-balance methods of depreciation.
Answer:

The current ratio is not affected by alternative depreciation methods used because the
measure of current assets and current liabilities is not influenced by depreciation

measurements. However, total assets and net income (retained earnings portion of
shareholders' equity) are decreased when the double-declining-balance depreciation method
is used instead of straight-line. Hence, the debt/assets and debt/equity ratios increased
(deteriorated) when the accelerated depreciation method is applied during the early portion of
the asset's life.
33. Several years ago, Welch Company purchased a copyright. Amortizing occurs on a
straight-line basis over its estimated useful life. The company’s balance sheets follow at
December 31, 2009, and 2008:

A. How much amortization expense did Welch record during 2009?
B. Calculate the original cost of the patent.
C. As of December 31, 2009, over how many years has Welch amortized the copyright?
Answer:
A. $3,000
B. $15,000 + $135,000 = $150,000
C. $18,000 / $3,000 = 6 years
34. On January 1, the balance in accumulated depreciation is $28,000. During the current
year depreciation expense is $10,000 and equipment with a cost of $9,000 was sold for
$3,000 at a loss of $1,000. Calculate the December 31 balance in accumulated depreciation.
Answer: $28,000 + $10,000 – [$9,000 – $3,000 – $1,000] = $33,000
35. The balance of accumulated depreciation on January 1 and December 31, 2008 is $54,000
and $58,000, respectively. During 2008, depreciation expense is $18,000, and equipment with
a cost of $20,000 is sold for $4,000. Calculate the loss or gain from the sale of equipment.
Answer:
$58,000 – $18,000 – $54,000 = $14,000 accumulated depreciation removed
$20,000 – $14,000 – $4,000 = $2,000 loss

Short Essay Questions
1. Dorman Company purchased a new web server on January 1. The following information
and expenditures related to this acquisition were made:

Specify and justify which of the preceding expenditures should be added to the cost of the
web server and disclose that cost. Indicate how the expenditures excluded from the cost of the
web server would be classified.
Answer: The cost of the web server is its cash or cash equivalent price plus all expenditures
necessary to get the asset in place and ready for its intended use. The list price does not
measure the web server's cash price and therefore is irrelevant information. The cost includes
the cash price ($4,200), transportation-in ($300), insurance during transport ($100),
installation costs ($200), and the cost of the disk drive ($1,000). Hence, the total cost of the
web server is $5,800. Interest paid for financing the purchases ($240) and the cost of the oneyear maintenance contract ($400) are expensed during the first year of web server use.
2. Many years ago, a well-known American company publicly advertised with the slogan
"Our most important asset is our employees". More recently, other companies have realized
that quality employees working in an excellent work environment that respects those
employees produce quality products at a reasonable cost. Although this may be the
foundation for American companies to become more internationally competitive, on the
balance sheet and in your chapter on long-lived assets, there is no recognition of an employee
asset. Why is there not an asset on the balance sheet that recognizes the contribution of
employees to the future profit-making ability of a firm?
Answer: Usually the difficulty of objectively measuring the contribution of a quality work
force and excellent work environment is used to justify the exclusion of human assets from
the balance sheet. In a wage labor organization of production consistent with capitalism, the
employer purchases the employees' time, not the employee him/herself. Although the

employer has considerable influence over employees, he/she does not own nor possess nor
totally control those employees, as does the owner of an asset that is recognized on the
balance sheet.
3. On January 1, 2009, Tavis Corp. sold a piece of equipment for $10,000 that it had used for
several years. The equipment had cost $50,000, and the accumulated depreciation account
had a balance of $34,000 at the time of the sale. Describe the effects on the accounting
equation of selling the equipment.
Answer: The entry to record the sale of a plant asset has the net effect of reducing assets and
owners’ equity each by $6,000. Three items are impacted in the asset section of the balance
sheet. First, cash is increased by $10,000. Second, the cost of the equipment, $50,000, is
removed from assets. Third, the accumulated depreciation associated with the plant asset sold
is removed from the accumulated depreciation account, thereby increasing assets by $34,000.
The decrease in owners’ equity is a result of the $6,000 loss associated with the disposal.
4. Identify the role of the matching principle in accounting for long-lived assets.
Answer: Costs of long-lived assets are capitalized and reported as assets on the balance sheet.
The estimated useful life is used as a basis for estimating the period of time in which the cost
of the asset will be allocated. The depreciation method is chosen based on what method will
best allocate the cost of the asset incurred to accounting periods in which the respective
revenue was earned.
5. What primary objective should management attempt to accomplish when selecting the
depreciation method for tax purposes?
Answer: Management should use the depreciation strategy that provides the greatest
economic benefit for the company. This normally means that management should choose the
shortest allowable time and the most extreme form of accelerated depreciation. These
methods save tax dollars in the early years of the assets’ lives, and thereby minimize the cash
flows needed to make tax payments.
6. What problems are inherent in recording trade-ins of plant assets?
Answer: It is difficult to determine the dollar amount at which the asset received should be
valued on the balance sheet. The asset received in a trade-in should be valued on the balance

sheet at either the fair market value of the assets given up, or the fair market value of the
assets received, whichever is clearly more evident and objectively determinable.
7. How do intangible assets differ from long-lived plant assets?
Answer: Intangible assets are characterized by having rights, privileges, and benefits of
possession with no physical existence. Plant assets are tangible and have a physical existence.
Both are used in the operations of the business and provide benefits that extend beyond the
current accounting period.
8. During a meeting of top executives of the Alcorn Corporation, a discussion of the current
downturn of sales and profits was taking place. Expecting vigorous competition to extend this
difficult situation well into the next decade, the executives searched for ways to soften its
impact on the financial statements. Attention was focused upon the company controller who
was answering inquiries concerning the possibility of changing accounting procedures in
order to give shareholders' the "best view from a bad situation". Responding to the inquiries,
the controller authoritatively observed: "Alcorn uses a 10-year expected life on its long-term
assets and a salvage value equal to 5% of cost in calculating depreciation expense using the
straight-line method. This policy was quite conservative in light of the industry average of a
15-year life expectancy and a 10% of cost salvage value. In light of the 3 billion dollars of
depreciable assets (net book value), switching to the industry average would certainly
improve the measured results of operations." Everyone was thrilled about the possibility of
improving measured profits except for one middle-top executive. She questioned whether the
switch would be acceptable to the auditor. The controller responded that switching to industry
average expectations would not violate GAAP and would be acceptable to the auditor (whose
firms depends greatly on Alcorn’s account). Alcorn would disclose the change in the
footnotes and the effect of this change on accounting estimates in the current year's net
income. The questioning executive would not object to the plan to liberalize income
measurement, but stated that it has always been known as a most conservative firm. And if
things ultimately go from bad to worse, Alcorn may get some negative press concerning the
change because of the appearance of delaying disclosure on the income statement of the
financial trouble Alcorn is facing. It was decided to change the depreciation policy using the
industry average expected life and salvage value.

Comment on this change of depreciation measurement in light of generally accepted
accounting principles and the problem of appearance. Include the amount of increase in net
income caused by this change in depreciation parameters.
Answer: Changing estimated life from 10 years to 15 years and salvage value from 5% to
10% of cost decreases annual depreciation expense on $3 billion of net assets by $105 million
(from $285 million to $180 million). This significant increase in measured profits can
certainly be justified under GAAP. After all, Alcorn is only changing depreciation parameters
to that typically acceptable in the industry. (This can be referred to as the teenage
justification: Everyone else is doing it.) Full disclosure of the change and its effect on the
financial statements minimizes criticism. The auditor would not be justified in rejecting the
changes in estimated life and salvage value that are acceptable in the industry. However, the
general population interested in Alcorn’s financial position and results of operations may not
consider the change in such a narrow accounting viewpoint. If Alcorn continues its financial
slide, changes in accounting measurements will ultimately not be able to continue the liberal
measures of Alcorn’s income statement and balance sheet. Ultimately, Alcorn may have to
restructure operations by closing down plants and laying off employees. This results in huge
charges (restructuring losses) against net income. Less depreciation expense now will result
in more restructuring losses later. (The piper will have to be paid.) At this time, the parties
interested in Alcorn and those taking large losses on their investments in its stock will
question the intent of such accounting changes. Alcorn is considered the steward of
conservatism in accounting. This reliance and the ultimate disappointment will only cause the
users of accounting information to question the reliability and usefulness of financial
statements.
9. What are post-acquisition expenditures? How are they accounted for?
Answer: Post-acquisition expenditures are costs that either improve an existing asset, not
merely maintain it, or increase its useful life. Costs incurred to improve the asset are called
betterments, and are capitalized as part of cost of the asset. Costs incurred to repair or
maintain the assets’ current level of productivity are classified as maintenance. Maintenance
costs are expensed immediately and reported on the income statement.
10. How should management choose an acceptable cost allocation method for accounting
purposes?

Answer: The primary selection factor should be based on how well the cost allocation method
matches expenses against the revenues produced. The straight-line method should be used in
situations where revenues are constant across a period of time. The accelerated methods
assume that revenues are higher in early periods and lower in later periods. The activity
method assumes that revenues are generated in proportion to the assets’ activity. Management
often chooses a method based on its desired effect on important financial ratios that are used
by shareholders, investors, and creditors to evaluate management performance. The tax
effects of different depreciation choices are also taken into consideration.
11. Identify the steps necessary in recording the retirement of the long-lived asset.
Answer: First, remove the cost basis of the asset with a credit to the specific plant asset
account. Second, remove the associated accumulated depreciation with a debit. Record the
cash received, if any, as a debit to Cash. Finally, if the selling price exceeds the asset’s book
value, record a gain by crediting, “Gain on Retirement of Plant Assets,” or if the selling price
was less than the asset’s book value, record the loss by debiting “Loss on Retirement of Plant
Assets.”
12. Intangible assets can be divided into two broad categories; those with definite lives, and
those with indefinite lives. Assets with indefinite lives are not subject to amortization while
those with definite lives are. Explain why this is the case and give at least one example of an
intangible asset with a definite life and one example of an intangible asset with an indefinite
live.
Answer: Copyrights and patents are examples of intangible assets with definite lives.
Goodwill, trademarks, and organization costs, are examples of intangible assets with an
indefinite life.
Assets with indefinite lives are not subject to amortization because their cost can’t be
allocated to a finite number of accounting periods, when their lives are infinite or
indeterminable. Intangible assets with definite lives are amortized over their legal or useful
lives, whichever is shorter.
13. How do long-lived assets differ from inventory?
Answer: Long-lived assets are assets used in the operations of the business, providing
benefits that extend beyond the current accounting period. Inventory assets are classified as
current on the balance sheet and are expected to help produce income (sold) in the current

accounting period. Inventory assets are held for sale and are not used in the operations of the
business, whereas long-lived assets are used to produce income.
14. The Dayton Symphony recently acquired cellist Carlos Romono from the Cincinnati
Symphony in exchange for violinist Elton Daal. These artists’ contracts are capitalized and
reported as assets by the symphonies. What complications arise in determining the cost of
each artist’s contract for accounting purposes?
Answer: The asset received in a trade-in should be valued on the balance sheet at either the
fair market value of the asset given up, or the fair market value of the asset received,
whichever is clearly more evident and objectively determinable. The fair market value of the
asset Dayton received (Carlos) is objectively hard to determine and may be difficult to
quantify. The amount one symphony is willing to “pay” and another symphony is willing to
accept is the best approach to determine a True fair market value. Since neither of these
artists is being “sold” out right, this transaction represents a True absence of the real fair
market value of either artist. A best guess at fair market value will have to suffice.

Test Bank for Financial Accounting: In an Economic Context
Jamie Pratt, Michael F. Peters
9780470635292, 9781119537571, 9781119444367

Document Details

Related Documents

person
Emma Thompson View profile
Close

Send listing report

highlight_off

You already reported this listing

The report is private and won't be shared with the owner

rotate_right
Close
rotate_right
Close

Send Message

image
Close

My favorites

image
Close

Application Form

image
Notifications visibility rotate_right Clear all Close close
image
image
arrow_left
arrow_right