Leaming Objestive P4 15. A company had a buldozer destroyed by fire. The buldozer originaly cos $125.,000. he $60,000. The proceeds from the insurance company were $90,000. The company A) A loss of $25,000 B) A gain of $25,000 C) A loss of $65,000. D) A gain of $65,000 E) A gain of $90,000. should recognize P4 16. Huffington Company traded in an old de depreciation of $60,000. on the old truck, which meant livery truck for a new onc. The old track had a cost of $75,000 and accumvalated $113,000 in The new truck had an invoice price of $125,000. Huffingice was given a $12,000 trade-in allowance ue of the new trust tey paid $113,000 in addition to the old truck to acquire the new truck. What is the recorded A) $15,000 B) $75,000 C) $113,000 D) $125,000 E) S128,000 Learning Objective: PS 17. Depletion: B) i ahio elled dealciaio the cos of asuresurces to periods in which biey ar estnacied and sold C) D) E) Is also called amortization. Is an unrealized expense reported in equity. Is the process of allocating the cost of intangibles to periods in which they are used. PS 18. A company purchased a tract of land for its natural resources at a cost of $1,500,000. It expects to mine 2,000,000 tons of from this land. The salvage value of the land is expected to be $250,000. The depletion expense per ton of ore is A) $0.75 B) $0.625 C) $0.875. D) $6.00. E) $8.00. P6 A) Is the systematic allocation of the cost of an intangible asset to expense over its estimated useful life. B) 19. Amortization: Is the process of allocating to expense the cost of a plant asset to the accounting periods benefiting from its use. D) Is an accelerated form of expensing an asset's cost E) Is also called depletion. Learning Qbjective: P6 20. A leasehold: A) Is a short-term rental agreement. B) Is the same as a patent. C) Are the rights granted to the lessee by the lessor. D) Is recorded as rent expense. E) Is an investment asset