1, Property, plant and equipment are:

a, Tangible assets used in the operation of a business having a useful life of more than one accounting period.

b, Current assets.

c, Long-term investments.

d, Intangible assets used in the operations of a business having a useful life of more than one accounting period.

e, Tangible assets used in the operation of business having a useful life of less than one accounting period.

2, The relevant factor(s) in calculating depreciation is (are):

a, Cost.

b, Residual value.

c, Useful life.

d, Both cost and useful life.

e, All of these answers are correct.

3, Sports world purchased equipment costing $10,000. The equipment has a residual value of $1,000, and an estimated useful life of 5 years or 36,000 shoes. Actual units produced during the year were 7,000 units. Calculate annual amortization using the straight-line method.

a, $1,800

b, $4,000

c, $1,450

d, $2,000

e, $1,750