Question 13

Which of following is not a similarity in the accounting treatment for depreciation and cost depletion?

Question 13 options:

	A. The estimated life is based on economic or productive life.
	B. Assets subject to either are reported in the same classification on the balance sheet.
	C. The rates may be changed upon revision of the estimated productive life used in the original rate computations.
	D. Both depreciation and depletion are based on time.

Question 14

The debit for a sales tax properly levied and paid on the purchase of machinery preferably would be a charge to ____________.

Question 14 options:

	A. the machinery account
	B. a separate deferred charge account
	C. miscellaneous tax expense (which includes all taxes other than those on income)
	D. accumulated depreciation-machinery

Question 15

Which of the following is not a capital expenditure?

Question 15 options:

	A. Repairs that maintain an asset in operating condition
	B. An addition
	C. A betterment
	D. A replacement

Question 16

Pike Co. purchased a machine on July 1, 2012, for $800,000. The machine has an estimated useful life of five years and a salvage value of $160,000. The machine is being depreciated from the date of acquisition by the 150% declining-balance method. For the year ended December 31, 2012, Pike should record depreciation expense on this machine of ______________.

Question 16 options:

	A. $240,000
	B. $160,000
	C. $120,000
	D. $96,000