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Questions and Answers
When an asset is discarded, and the cash received is less than the book value, what should be recorded?
When an asset is discarded, and the cash received is less than the book value, what should be recorded?
- No entry
- The book value as revenue
- A gain
- A loss (correct)
When an asset is discarded, and the cash received is greater than the book value, what should be recorded?
When an asset is discarded, and the cash received is greater than the book value, what should be recorded?
- No entry
- A loss
- A gain (correct)
- The book value as revenue
When an asset is fully depreciated and then discarded, what should be the journal entry?
When an asset is fully depreciated and then discarded, what should be the journal entry?
- Debit Cash, Credit Asset Cost
- Debit Accumulated Depreciation, Credit Asset Cost
- No entry is required (correct)
- Debit Asset Cost, Credit Accumulated Depreciation
If an asset costing $8,000 with accumulated depreciation of $6,000 is discarded, what is the book value of the asset?
If an asset costing $8,000 with accumulated depreciation of $6,000 is discarded, what is the book value of the asset?
What is the correct journal entry when an asset is sold for less than its book value?
What is the correct journal entry when an asset is sold for less than its book value?
What is the book value of the equipment at the time of sale on 3/31?
What is the book value of the equipment at the time of sale on 3/31?
How much gain or loss is recorded when the equipment is sold for $7,000 cash?
How much gain or loss is recorded when the equipment is sold for $7,000 cash?
How much depreciation expense should be recorded for the equipment up to 3/31?
How much depreciation expense should be recorded for the equipment up to 3/31?
If the equipment is sold for $3,000 cash, what is the gain or loss recorded?
If the equipment is sold for $3,000 cash, what is the gain or loss recorded?
What is the book value of the equipment at the time of sale on 3/31 if it was originally purchased for $16,000 and has $12,000 in accumulated depreciation at the prior year-end?
What is the book value of the equipment at the time of sale on 3/31 if it was originally purchased for $16,000 and has $12,000 in accumulated depreciation at the prior year-end?
If the equipment is sold for $7,000 cash, and has a book value of $3,000, what is the appropriate accounting treatment?
If the equipment is sold for $7,000 cash, and has a book value of $3,000, what is the appropriate accounting treatment?
If a company purchases a mineral deposit with an estimated 300,000 tons of available ore for $900,000 and expects zero salvage value, what would be the depletion charge per ton?
If a company purchases a mineral deposit with an estimated 300,000 tons of available ore for $900,000 and expects zero salvage value, what would be the depletion charge per ton?
If a company sells a plant asset for $4,000 that originally cost $6,000 and had accumulated depreciation of $3,000, what should be recorded?
If a company sells a plant asset for $4,000 that originally cost $6,000 and had accumulated depreciation of $3,000, what should be recorded?
Which of the following is an example of a natural resource asset?
Which of the following is an example of a natural resource asset?
If a company mines and sells 75,000 tons of ore from a mineral deposit with an estimated 250,000 tons of available ore that was purchased for $500,000, what would be the depletion expense for the year?
If a company mines and sells 75,000 tons of ore from a mineral deposit with an estimated 250,000 tons of available ore that was purchased for $500,000, what would be the depletion expense for the year?
How should natural resource assets be reported on the balance sheet?
How should natural resource assets be reported on the balance sheet?
If a company sells a plant asset for $1,500 that originally cost $2,000 and had accumulated depreciation of $800, what should be recorded?
If a company sells a plant asset for $1,500 that originally cost $2,000 and had accumulated depreciation of $800, what should be recorded?
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