t Palse T7 points) The acquisition costs of property, plans, and equipment should inelude all costs necessary to get the asset in p ready for use i lace and 2. The estimated amount that an asset can be sold for at the end of its useful life is called its bokue. S. The double-declining-balance method of depreciation is also referred to as an accelerated depeciation met 4. Ifa company sells a fixed asset for an amount which is less than 5. Intangible assets do not exist physically 6. 7, 8. 9. 10. 11. 12. its book value, a gain must be recognized. Goodwill re fers to the excess of purchase price of a business over the fair value of its net assets. ance in Accumulated Depreciation account is doducted from the cost of fixed assets on the balance sheet. Fixed assets are reported at their book valuc on the balance sheet Obligations that depend on future events and are based on past transactions are contingent liabilities In order to record a contingent liabiity, the liability must be probable and reasonably estimated. The total earnings of an employee for a payroll period is referred to as the net pay Most employers are required to withhold a postion of the carnings of each employee for FICA tax 13. Most employers are required to withbold federal unemployiment taxes from employee earnings 14. FICA tax is a payroll tax that is paid by both the employee ard the employer. 15. A bond is simply a form of an interest-bearing note. 16. The two main sources of stockholders' equity are investments contributed by stockholders and net income retained in the business Prefetred stockholders must receive their current year dividends before the common stockholders can receive any dividends. 17