QUESTION 35 A loss on the sale of a plant asset is listed as: O a liability on the balance sheet O other expense on the income statement O an asset on the balance sheet. other income on the income statement. QUESTION 36 A plant asset is fully depreciated when the book value is O greater than the salvage value O equal to the salvage value. O equal to the market value O greater than the market value QUESTION 37 Expenditures for changing oil in a machine or repainting a car would be: O added to the cost of the asset. O added as a capital expenditure O charged to an expense account. O added as a betterment QUESTION 38 Capital expenditures would include: O additions betterments. O extraordinary repairs. O All of the above answers are correct. QUESTION 39 What is the difference between an extraordinary repair and a betterment? O A betterment extends the life of the asset; an extraordinary repair does not. O An extraordinary repair is a capital expenditure; a betterment is not. An extraordinary repair may extend the life of the asset a betterment does not O None of the above answers is correct. QUESTION 40 Which depreciation method deducts residual value when computing depreciation expense? O Units-of-production Straight-line Double declining-balance Both Units-of-production and Straight-line are correct