10. Natural resources are: a. Assets that are physically consumed when used such as standing timber, mineral deposits and oil and gas fields. b. Tangible assets used in the operations of the business. c. Current liabilities because they are depleted d. Not subject to allocation to expense over their useful lives. e. Depleted using a straight-line method. 11. Amortization is: a. The process of allocation to expense the cost of a plant asset to the accounting periods benefitting from its use. b. The process of allocating the cost of natural resources to periods when they are consumed. c. The accelerated form of expensing an asset's cost. d. The allocation of the cost of an intangible asset to expense over its estimated useful life. e. Also called depletion. 12. The meaning of goodwill in accounting is: a. Long term assets held as investment. b. The amount by which a company's value exceeds the value of its individual assets and liabilities. c. The support of the board of directors for the operating decisions of management. d. The cost of developing, maintaining, or enhancing the value of a trademark. e. Rights granted to an entity to deliver a product or service under specified conditions. 13. A building was purchased for $370,000 and depreciated using the straight-line basis under the assumption it would have a twenty-year life and a $10,000 salvage value. At the beginning of the building's eleventh year it was determined the building had only eight years of remaining life instead of ten, and that at the end of the remaining eight years its salvage value would be $16,000. What amount of depreciation should be recorded in each of the building's remaining eight years? 14. On April 1 of the current year, a company purchased and placed in service a machine with a cost of $240,000. The company estimated the machine's useful life to be four years or 60,000 units of output with an estimated salvage value of $60,000. During the current year, 12,000 units were produced. Prepare the necessary December 31 adjusting journal entry on the next page to record depreciation for the current year assuming the company uses: a. The straight-line method of depreciation b. The units-of-production method of depreciation c. The declining balance method of depreciation