To be classified as a plant asset, an asset must (mark all that apply). Each incorrect answer results in a negative point mark.

Select one or more:

a. Have a salvage value at least 20% of the purchase price.

b. Be tangible.

c. Cost over $100,000.

d. Be used in business operations rather than held for resale.

e. Have a useful service life of more than one year.

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Which answer is FALSE? In accounting for plant assets, accountants must:

Select one:

a. Record the allocation of the asset's original cost to periods of its useful life through depreciation.

b. Record subsequent expenditures on the asset.

c. Account for the disposal of the asset.

d. Record the acquisition cost of the asset.

e. Record unit capacity of the asset.

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The units-of-production depreciation formula is:

Select one:

a. (x)Deprecation per period = Asset cost + Estimated salvage value.

b. (y)Estimated total units of production(service)during useful life of asset.

c. (z)Depreciation per period = Depreciation per unit Number of units of goods or services produced.

d. (x), (y), and (z).

e. (x) and (z) only.