contestada

Please help me I have less then 40mins please

When calculating declining-balance depreciation, the straight-line rate was used instead of double the straight-line rate. In the first year of ownership, this error would cause

 

A. the period’s depreciation expense to be overstated.

 

B. the period’s depreciation expense to be understated.

 

C. the period end assets to be understated.

 

D. None of the above

A depreciation method that allocates depreciation of a plant asset based on the Tax Act of 1989 is the _______ method.

 

A. straight-line

 

B. units-of-production

 

C. modified accelerated cost recovery

 

D. double-declining-balance

Salvage value was ignored when originally calculating the units-of-production depreciation. This error would cause

 

A. the period’s net income to be overstated.

 

B. the period’s net income to be understated.

 

C. the period end assets to be overstated.

 

D. None of the above

The allocation of the cost of a natural resource is

 

A. depreciation.

 

B. depletion.

 

C. amortization.

 

D. accrual.


The credit portion of the adjustment for the depletion of a coal mine was credited to the Coal Mine account. This error would cause

 

A. the period’s net income to be overstated.

 

B. the period’s net income to be understated.

 

C. the period end assets to be overstated.

 

D. None of the above

Intellectual property assets are

 

A. depreciated.

 

B. depleted.

 

C. amortized.

 

D. expensed.

Respuesta :


#1.
When calculating declining-balance depreciation, the straight-line rate was used instead of double the straight-line rate. In the first year of ownership, this error would cause C. the period end assets to be overstated.

#2. 
A depreciation method that allocates depreciation of a plant asset based on the Tax Act of 1989 is the C. modified accelerated cost recovery.

#3.
Salvage value was ignored when originally calculating the units-of-production depreciation. This error would cause B. the period’s net income to be understated.

#4.
The allocation of the cost of a natural resource is B. depletion.

#5.
The credit portion of the adjustment for the depletion of a coal mine was credited to the Coal Mine account. This error would cause A. the period’s net income to be overstated.

#6.
Intellectual property assets are C. amortized.

The answer would be C :)