81-86

81. If an asset is exchanged for a similar asset, a loss results: a. when the book value of the old asset is greater than what is received for the trade-in allowance b. when the book value of the old asset is less than what is received for the trade-in allowance c. when the accumulated depreciation equals the cost of the old asset d. None of the above. 82. If an asset is being sold or exchanged, the gain or loss is always computed by comparing the: a. market value and cost b. book value and salvage value c. market value and salvage value d. market value and book value 83. The process of writing off an intangible asset is: a. depreciation b. depletion c. amortization d. None of the above. 84. The exclusive right to produce and sell a manuscript is called a: a. copyright b. franchise c. patent d. goodwill 85. The allocation of the cost of a natural resource is: a. depreciation b. depletion c. amortization d. accrual 86. Salvage value was ignored when originally calculating the units-of-production depreciation. This error would cause: a. the period's net income to be overstated b. the period's net income to be understated c. the period end assets to be overstated d. None of the above