PART II - Property, Plant & Equipment | Depreciation

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Depreciation Concepts Listed below are concepts and terminology related to depreciation. Required: Match each concept with the related terminology.

Tangible assets that are arrached to natural resources are depreciated over a. The life of the natural resource b. The shorter of the tangible asset's life or the natural resource's life c. The life of the tangible asset d. The longer of the tangible asset's life or the natural resource's life

QUESTION 17 Match the term on the left to the appropriate description on the right. v Historical cost A. The amount of a PP&E asset's acquisition cost that will be depreciated over the asset's useful life v Depreciable cost B. An asset whose value derives from rights and privileges rather than physical existence v Salvage value v Accumulated depreciation C. The capitalized acquisition cost of an asset v Intangible asset v Amortization D. The process of allocating an intangible asset's acquisition cost to expense over its useful life E. The book value of a fully-depreciated PP&E asset F. The total amount of depreciation expense that has been recorded to-date for a PP&E asset

Costs incurred internally to create intangibles are required to be a. expensed as incurred b. capitalized c. expensed only if they have a limited life O d. capitalized if they have an indefinite life

Which of the following items should NOT be disclosed regarding Property, Plant and Equipment? O The balance in the Accumulated Depreciation account by major classes of depreciable assets or in total OA description of the methods used in computing depreciation The balances of major classes of depreciable assets, by nature and function O All of the above should be disclosed

Listed below are several terms and phrases associated with operational assets. Pair each item from List A (by letter) with the item from List B that is most appropriately associated with it. List A List B _____ 1. Depreciation _____ 2. Goodwill _____ 3. Amortization _____ 4. Natural resources _____ 5. Intangible assets _____ 6. Copyright _____ 7. Trademark a. Exclusive right to display a word, a symbol, or anemblem.b. Exclusive right to benefit from a creative work.c. Assets that represent contractual rights.d. Oil and gas deposits, timber tracts, and mineraldeposits.e. Purchase price less fair value of net identifiableassets.f. The allocation of cost for plant and equipment.g. The allocation of cost for intangible assets.

Which of the following costs incurred internally to create an intangible asset is generallyexpensed? a. Research and development costs.b. Filing costs.c. Legal costs.d. All of the above.

Describe the derecognition of property, plant, and equipment and intangible assets