1. Calculate straight-line depreciation, including part year:

2. Calculate book value of a plant asset:

3. Explain why depreciation is added to net income to compute cash from operating activity:

4. Identify items of cost (versus expense) in the acquisition of a plant asset:

5. Compute gain/loss on the sale of a plant asset:

6. Compute gain/loss when an asset is retired:

7. Cite the GAAP rule for recognizing costs of research and development expenditures:

8. Compute the acquisition cost of a plant asset:

9. Understand the relationship between cost, accumulated depreciation, gain/loss, and cash received On a sale of a plant asset:

10. Identify current liabilities in a list of liability accounts: