Reference no: EM132707280
Problem 1: The term applied to the periodic expiration of a plant asset's cost is?
a. amortization.
b. depletion.
c. depreciation.
d. cost expiration.
Problem 2: The book value of an asset is equal to the?
a. asset's fair value less its historical cost.
b. blue book value relied on by secondary markets.
c. replacement cost of the asset.
d. asset's cost less accumulated depreciation.
Problem 3: Equipment that cost $144,000 and on which $120,000 of accumulated depreciation has been recorded was disposed of for $36,000 cash. The entry to record this event would include a?
a. gain of $12,000.
b. loss of $12,000.
c. credit to the Equipment account for $36,000.
d. credit to Accumulated Depreciation for $120,000.
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