Chapter 11: Plant Assets and Intangible Assets

1. To what types of long-lived assets do the following expenses apply: depreciation, depletion, and amortization?

2.) Describe how to measure the cost of a plant asset. Would an ordinary cost of repairing the asset after it is placed in service be included in the assets cost?

3.) When assets are purchased as a group for a single price and no individual asset cost is given, how is each assets cost determined?

4.) Explain the concept of accelerated depreciation. Which of the depreciation methods results in the most depreciation in the first year of the assets life?

5.) Describe how to compute depreciation for less than a full year and how to account for depreciation for less than a full month.