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thar eriginally cost $100,000 for $60,000 cash. The accumulated depreciatioa on the machl 54. A company sold a machine that originally cost Si S40,000. The

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thar eriginally cost $100,000 for $60,000 cash. The accumulated depreciatioa on the machl 54. A company sold a machine that originally cost Si S40,000. The company should recognize a: A) $0gainor loss. B) $20,000 loss C) $20,000 gain D) $40,000 loss. E) 560,000 gain. Learning Qbjiective: Ch8-Pl 55. Land improvements are: A) Assets that increase the usefulness of land, and like land, are not depreciated. B) Assets that increase the usefulness of land, bus that have a limited useful life and are subject to depreciation C) Included in the cost of the land account D) Expensed in the period incurred. E) Also called basket purchases. Lcarning Obiective Ch8-P1 56. Plant assets include: A) Land. B) Land Improvements. C) Buildings D) Machinery & Equipment. E) All of the above. Lcaming Objective: Ch8-P3 57. Extraordinary repairs A) Are revenue expenditures B) Extend an asset's useful life beyond its original estimate C) Are credited to accumulated depreciation. D) Are additional costs of plants assets that do not materially increase the asser's life. expensed as incurred. Leaming Obiective: Ch8-PS 58. A company purchased a mineral deposit for $800,000. It expects this property to produce 1,200,000 tons of ore salvage value of s50,000. In the current year, the company mined and sold 90,000 tons of ore. Its depletion expense f current period equals: A) $ 15,000. B) S 60,000. C) $150,000. D) S 56,250. E) $139,500. 59. A patent A) Gives its owner the exclusive right to publish and sell a musical or literary work during the life of the creator plus B) Is an exclusive right granted to its owner to manufacture and sell a device or to use a process for 20 years. C) Is an exclusive D) Is the amount by which the value of a company exceeds the fair market value of a company's net assets if purcha right granted to its owner to manufacture and sell a device or to use a process for 70 years. separately Gives its owner the exclusive right to publish and sell a musical or literary work during the life of the creator p E) Ch8-Cl 60. Plant assets are: A) Current Assets B) Used in Operations. C) Natural Resources D) Short-Term Investments E) Intangible

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