47.)

Augie Corporation purchased a truck at a cost of $63,000. It has an estimated useful life of five years and estimated residual value of $5,500. At the beginning of year three, Augie's managers concluded that the total useful life would be four years, rather than five years. There was no change in the estimated residual value. What is the amount of depreciation that Augie should record for year 3 under the straight-line depreciation method?

$8,625.

$11,500.

$16,250.

$17,250.

48.)

Tangible long-lived productive assets differ from intangible long-lived productive assets in that tangible assets have physical substance whereas intangible assets have no physical substance.

True

False

49.)

An expenditure is capitalized when it is reported as an expense on the income statement.

True

False

50.)

Ordinary repairs and maintenance costs are incurred to maintain a long-lived productive asset and are expensed as incurred.

	True
	False