1,2,3,5,8,10,11

QUESTIONS What are the two ty cachay is land different from other plant assets? yo major types of long-term assets that require a periodic write-off? Present examples for each type of asset the term that denotes the periodic write-off to expense. is what amounts constitute the acquisition cost of plant assets? ny bought land with a vacant building for $400,.000. Foss will use the building in its opera- oss allocate the purchase price between the land and building? Why or why not? Would your 2 In what rent if Foss intends to raze the building and build a new one? Why or why not? answer be different if the recognition of depreciation expense necessary to match revenue and expense propertly? is the pattern of plant asset utilization (or benefit) that corresponds to each of the following deprecia- swnmethods:() straight-line, (b) units-of-production, (e) double-declining halance? 9 apter 9 Accounting for Long-Lived and Intangible Assets 7. How should a revision of depreciation charges due to a change in an asset's estimated useful life or s age value be handled? Which periods--past, present, or future-are affected by the revision? 8. When is a plant asset considered to be impaired? How is an impairment loss calculated? 9. What is the benefit of accelerating depreciation for income tax purposes when the total depreciation taken 6 is no more than if straight-line depreciation were used? 10. Identify two types of revenue expenditures. What is the proper accounting for revenue expenditures? 11. Identify two types of capital expenditures. What is the proper accounting for capital expenditures? 12. What factors determine the gain or loss on the sale of a plant asset? 13. Folger Company installed a conveyor system that cost $192,000. The system can be used only in the excava- tion of gravel at a particular site. Folger expects to excavate gravel at the site for 10 years. Over how ) 8 years and (b) 12 years? many years should the conveyor be depreciated if its physical life is estimated at (a 14. What are five different types of intangible assets? Briefly explain the nature of each type. 15. How should a firm account for research and development costs? 16. Under what circumstances is goodwill recorded? 17. How is the return on assets ratio calculated? What does this ratio reveal about a business? 18. How is the asset turnover ratio calculated? What does this ratio reveal about a business? SHORT EXERCISES -1. Calculate Amount to Capitalize The Miller Company paid $10,000 to acquire a 100 ton press