When a company discards machinery that is fully depreciated, this transaction would be recorded with the following entry
When a company exchanges machinery and receives a trade-in allowance greater than the book value, this transaction would be recorded with the following entry (assuming the exchange was considered to have commercial substance):
On December 31, Strike Company has decided to sell one of its batting cages. The initial cost of the equipment was $310,000 with an accumulated depreciation of $260,000. Depreciation has been taken up to the end of the year. The company found a company that is willing to buy the equipment for $50,000. What is the amount of the gain or loss on this transaction?
Which of the following should be included in the acquisition cost of a piece of equipment?
Accumulated Depreciation
Expenditures that add to the utility of fixed assets for more than one accounting period are
Which of the following below is an example of a capital expenditure?
The journal entry for recording an operating lease payment would
When determining whether to record an asset as a fixed asset, what two criteria must be met?
When the amount of use of a fixed asset varies from year to year, the method of determining depreciation expense that best matches allocation of cost with revenue is
Regardless of the depreciation method, the amount that will be depreciated during the life of the asset will be the same.
The normal balance of the accumulated depreciation account is debit.
Patents are exclusive rights to manufacture, use, or sell a particular product or process.