A) replacement cost of the asset and its historical cost. B) cost of the asset and the amount of depreciation expense for the year. C) cost of the asset and the accumulated depreciation to date. D) proceeds received from the sale of the asset and its original cost. 17. The book value of a plant asset is the difference between the Which of the following is not a common cost flow assumption used in costing inventory? A) First-in, first-out B) Middle-in, first-out C) Last-in, first-out D) Average cost 18. 19. In computing depreciation, salvage value is A) the fair value of a plant asset on the date of acquisition. B) subtracted from accumulated depreciation to determine the plant asset's depreciable C) D) cost. an estimate of a plant asset's value at the end of its useful life. ignored in all the depreciation methods. Rains Company purchased equipment on January 1 at a list price of $125,000, with a 2% discount if payment is made within a 10-day discount period. Payment was made within the discount period. Rains paid $6,250 sales tax on the equipment, and paid installation charges of S2,200. Prior to installation, Rains paid S5,000 to pour a concrete slab on which to place the equipment. What is the total cost of the new equipment? A) $131,250. B) $135,950. C) $138,450. D) $126,250. 20. Intangible assets 2. At a should b reported under the heading Property, Plant, and Equipment. B) C) D) are not reported on the balance sheet because they lack physical substance. should be reported as Current Assets on the balance sheet. should be reported as a separate classification on the balance sheet