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a measures the decline in market value of a plant ast b, measures the physical deterioration of a plant aet d is an outflow of
a measures the decline in market value of a plant ast b, measures the physical deterioration of a plant aet d is an outflow of eash froms the use of a plant asset Adeyrecation method that produces larger depreciation expense during the early years of m t'slie ion ler expense in the later years is an) a. llook value depreciation method b. Seraight-line depreciation method e. Units-of production deprecistion method d. Accelerated depreciation method The cost of an asset minus its accumulated depreciation is the asset's a salvage value b. book value liscarded a displa ed depreciation S0 gain or less c, market value d. residual value $8,000 loss The useful life of a plant asset is: a. The length of time it is used productively in a company's operations Is the same as its physical life. e. Determined by the FASB d. Determined by tax law is an exclusi 15. A capital expenditure results in a debit to ademark a. an expense account b. a capital account c. a liability account d. an asset account cost of portizat" teriorati 16. Which of the following expenditures would be debited to an expense account? a. The cost to replace the transmission of the company car b. The cost to change the company car's oil c. The cost to overhaul the company car's engine d. All of the above ould m ploye roll t 17. A company purchased a used machine for $80,000. The machine required delivery costs of $500 and installation costs of $8,000. Because the machine was used, $1,000 was spent on repairs to get the mach ready for use. In addition, $800 was spent to repair damage that occurred when the machine was unloa upon delivery. At which of the following amounts would the equipment be recorded? le: a. $80,000 b. $88,500 c. $89,500 d. $90,300
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