Create an Account

Already have account?

Forgot Your Password ?

Home / Questions / A company using the group depreciation method for its delivery trucks retired one of its d

A company using the group depreciation method for its delivery trucks retired one of its d

A company using the group depreciation method for its delivery trucks retired one of its delivery trucks due to damage before the average service life of the group was reached. An insurance recovery was received. The net book value of these  group asset accounts would be decreased by the

a.Original cost of the truck

b.Original cost of the truck less the insurance recovery received

c.Original cost of the truck less depreciation on the truck to the date of retirement

d.Insurance recovery received

12.When equipment is retired, accumulated depreciation is debited for the original cost less any residual recovery under which of the following depreciation methods?

 

Composite     Group

DepreciationDepreciation

a.No                                                  No

b.No                                                   Yes

c.Yes                                                  No

d.Yes                                                 Yes

13.Recognizing depletion expense is an example of the accounting process of

 

AllocationAmortization

a.NoNo

b.NoYes

c.YesYes

d.Yes                                                 No

14.A donated plant asset for which the fair value has been determined, and for which incidental costs were incurred in acceptance of the asset, should be recorded at an amount equal to its

a.Incidental costs incurred

b.Fair value and incidental costs incurred

c.Book value on books of donor and incidental costs incurred

d.Book value on books of donor

Dec 10 2019 View more View Less

Answer (UnSolved)

question Get Solution

Related Questions