Financial Accounting Fundamentals 5Th Edition Wild Test Bank Full Chapter PDF

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Chapter 8
ACCOUNTING FOR LONG-TERM ASSETS
True / False Questions
1. Plant assets refer to nonphysical assets that are used in the operations of a business.
Answer: False
Blooms: Remember
AACSB: Communication
AICPA BB: Industry
AICPA FN: Decision Making
Difficulty: 1 Easy
Learning Objective: 08-C1
Topic: Cost Determination
2. Plant assets are used in operations and have useful lives that extend over more than one
accounting period.
Answer: True
Blooms: Remember
AICPA BB: Industry
Difficulty: 1 Easy
3. If land is purchased as a building site, the cost of removing existing structures is not
charged to the Land account.
Answer: False
Blooms: Remember
AICPA BB: Industry
Difficulty: 1 Easy
Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
10-1
4. The process of allocating the cost of a plant asset to expense in the accounting periods
benefiting from its use is called depletion.
Answer: False
Blooms: Remember
AICPA BB: Industry
Difficulty: 1 Easy
Learning Objective: 08-P1
Topic: Depreciation Methods
5. Salvage value is an estimate of an asset’s value at the end of its benefit period.
Answer: True
Blooms: Remember
AICPA BB: Industry
Difficulty: 1 Easy
6. Obsolescence refers to the insufficient capacity of a company’s plant assets to meet the
company’s growing productive demands.
Answer: False
Blooms: Remember
AICPA BB: Industry
Difficulty: 1 Easy
7. Depreciation does not measure the decline in market value of an asset each period.
Answer: True
Blooms: Remember
AICPA BB: Industry
AICPA FN: Measurement
Difficulty: 1 Easy
10-2
8. A plant asset’s useful life is the length of time it is productively used in a company’s
operations.
Answer: True
Blooms: Remember
AICPA BB: Industry
Difficulty: 1 Easy
9. It is necessary to report both the cost and the accumulated depreciation of plant assets in the
financial statements.
Answer: True
Blooms: Remember
AICPA BB: Industry
Difficulty: 1 Easy
10. Depreciation expense is calculated using its cost, estimates of an asset’s salvage value,
and an estimated useful life.
Answer: True
Blooms: Remember
AICPA BB: Industry
Difficulty: 1 Easy
10-3
11. When an asset is purchased (or disposed of) at a time other than the beginning or the end
of an accounting period, depreciation is recorded for part of a year so that the year of purchase
or the year of disposal is charged with its share of the asset’s depreciation.
Answer: True
Blooms: Remember
AICPA BB: Industry
Difficulty: 1 Easy
Topic: Partial-Year Depreciation
12. Revising an estimate of the useful life or salvage value of a plant asset is referred to as a
change in accounting estimate and is reflected in the current, and future financial statements.
Answer: True
Blooms: Remember
AICPA BB: Industry
AICPA FN: Reporting
Difficulty: 1 Easy
13. The going concern assumption supports the reporting of plant assets at undepreciated cost
(book value) rather than market value.
Answer: True
Blooms: Remember
AICPA BB: Industry
Difficulty: 1 Easy
14. Total depreciation expense over an asset’s useful life will be identical under all methods
of depreciation.
Answer: True
Blooms: Remember
AICPA BB: Industry
Difficulty: 1 Easy
10-4
15. Financial accounting and tax accounting require the same recordkeeping and there should
be no difference in results between the two accounting systems.
Answer: False
Blooms: Remember
AICPA BB: Industry
Difficulty: 1 Easy
16. Depreciation is higher in earlier years and income is lower in the later years when using
straight-line versus accelerated methods.
Answer: False
Blooms: Remember
AICPA BB: Industry
Difficulty: 1 Easy
17. The book value of an asset when using double-declining-balance depreciation is always
greater than the book value from using straight-line depreciation, except at the beginning and
the end of the asset’s useful life, when it is the same.
Answer: False
Blooms: Understand
AACSB: Reflective Thinking
AICPA BB: Industry
Difficulty: 2 Medium
10-5
18. The Modified Accelerated Cost Recovery System (MACRS) is part of the U.S. federal
income tax laws and may be used for financial reporting.
Answer: False
Blooms: Remember
AICPA BB: Industry
AICPA BB: Legal
Difficulty: 1 Easy
19. Decision makers and other users of financial statements are especially interested in
evaluating a company’s ability to use its assets in generating sales.
Answer: True
Blooms: Remember
AACSB: Analytic
AICPA BB: Resource Management
AICPA FN: Risk Analysis
Difficulty: 1 Easy
Learning Objective: 08-A1
Topic: Total Asset Turnover
20. Asset turnover is computed by dividing net sales by average total assets.
Answer: True
Blooms: Understand
AACSB: Analytic
Difficulty: 1 Easy
21. Companies that have a relatively large amount invested in assets to generate a given level
of sales are considered capital-intensive.
Answer: True
Blooms: Remember
AACSB: Analytic
Difficulty: 1 Easy
10-6
22. Duncan reported net sales of $2,523 million and average total assets of $1,476 million. Its
total asset turnover equals 1.71.
Answer: True
Blooms: Apply
AACSB: Analytic
Difficulty: 3 Hard
Feedback: Total Asset Turnover = Net Sales/Average Total Assets

Total Asset Turnover = $2,523/$1,476 = 1.71
23. Edmond reported average total assets of $9,965 million and net sales of $10,430 million.
Its total asset turnover equals .96.
Answer: False
Blooms: Apply
AACSB: Analytic
Difficulty: 3 Hard

24. An asset’s cost includes all normal and reasonable expenditures necessary to get the asset
in place and ready for its intended use.
Answer: True
Blooms: Remember
AICPA BB: Industry
Difficulty: 1 Easy
10-7
25. If a machine is damaged during unpacking, the repairs are added to its cost.
Answer: False
Blooms: Remember
AICPA BB: Industry
Difficulty: 1 Easy
26. The purchase of a property that included land, building, and related improvements is
called a lump-sum or basket purchase.
Answer: True
Blooms: Remember
AICPA BB: Industry
Difficulty: 1 Easy
27. When a company constructs a building, the cost of the building includes materials and
labor but not design fees, building permits, or insurance during construction.
Answer: False
Blooms: Remember
AICPA BB: Industry
Difficulty: 1 Easy
28. Additions to land that increase the usefulness of the land such as parking lots, fences, and
lighting are not depreciated.
Answer: False
Blooms: Remember
AICPA BB: Industry
Difficulty: 1 Easy
Topic: Cost of Plant Assets
10-8
29. The cost of fees for insuring the title and any accrued property taxes are included in the
cost of land.
Answer: True
Blooms: Remember
AICPA BB: Industry
Difficulty: 1 Easy
30. Total asset cost plus depreciation expense equals book value.
Answer: False
Blooms: Remember
AICPA BB: Industry
Difficulty: 1 Easy
31. The units-of-production method of depreciation charges a varying amount of expense for
each period of an asset’s useful life depending on its usage.
Answer: True
Blooms: Remember
AICPA BB: Industry
Difficulty: 1 Easy
32. An accelerated depreciation method yields larger depreciation expense in the early years
of an asset’s life and less depreciation expense in later years.
Answer: True
Blooms: Remember
AICPA BB: Industry
Difficulty: 1 Easy
10-9
33. The double-declining balance method is applied by (1) computing the asset’s straight-line
depreciation rate, (2) doubling it, (3) subtracting salvage value from cost, and (4) multiplying
the rate times the net value.
Answer: False
Blooms: Understand
AICPA BB: Industry
34. A company purchased a plant asset for $60,000. The asset has an estimated salvage value
of $4,000, and an estimated useful life of 7 years. The annual depreciation expense using the
straight-line method is $4,000 per year.
Answer: False
Blooms: Apply
AACSB: Analytic
AICPA BB: Industry
Difficulty: 3 Hard
Feedback: Depreciation Expense = (Cost – Salvage Value)/Estimated Useful Life

Depreciation Expense = ($60,000 – $4,000)/7; Depreciation Expense = $8,000
35. Revenue expenditures are additional costs of plant assets that do not materially increase
the assets’ life or productive capabilities.
Answer: True
Blooms: Remember
AICPA BB: Industry
Difficulty: 1 Easy
Topic: Additional Expenditures
10-10
36. Capital expenditures are expenditures that keep assets in normal, good operating
condition.
Answer: True
Blooms: Remember
AICPA BB: Industry
Difficulty: 1 Easy
37. Extraordinary repairs are expenditures extending the asset’s useful life beyond its original
estimate, and are capital expenditures because they benefit future periods.
Answer: True
Blooms: Remember
AICPA BB: Industry
Difficulty: 1 Easy
38. Revenue expenditures are also called balance sheet expenditures.
Answer: False
Blooms: Remember
AICPA BB: Industry
Difficulty: 1 Easy
39. Betterments are a type of capital expenditure.
Answer: True
Blooms: Remember
AICPA BB: Industry
Difficulty: 1 Easy
10-11
40. Plant assets can be disposed of by discarding, selling, or exchanging them.
Answer: True
Blooms: Remember
AICPA BB: Industry
Difficulty: 1 Easy
Topic: Disposals of Plant Assets
41. The first step in accounting for an asset disposal is to calculate the gain or loss on
disposal.
Answer: False
Blooms: Remember
AICPA BB: Industry
42. Accounting for the exchange of assets depends on whether the transaction has commercial
substance; commercial substance implies that it alters the company’s future cash flows.
Answer: True
Blooms: Remember
AICPA BB: Industry
Topic: Exchanging Plant Assets
43. If an asset is sold above its book value, the selling company records a loss.
Answer: False
Blooms: Remember
AICPA BB: Industry
Difficulty: 1 Easy
10-12
44. Gain or loss on the disposal of assets is determined by comparing the disposed asset’s
book value to the value of any assets received.
Answer: True
Blooms: Remember
AICPA BB: Industry
Difficulty: 1 Easy
45. A loss on disposal of a plant asset occurs if the cash proceeds received from the asset sale
is less than the asset’s book value.
Answer: True
Blooms: Remember
AICPA BB: Industry
Difficulty: 1 Easy
46. Natural resources are assets that include standing timber, mineral deposits, and oil and gas
fields.
Answer: True
Blooms: Remember
AICPA BB: Industry
Difficulty: 1 Easy
Topic: Natural Resources
47. Amortization is the process of allocating the cost of natural resources to periods when
they are consumed.
Answer: False
Blooms: Remember
AICPA BB: Industry
Difficulty: 1 Easy
10-13
48. Natural resources may be reported under either plant assets or their own separate category
on the balance sheet.
Answer: True
Blooms: Remember
AICPA BB: Industry
Difficulty: 1 Easy
49. When the usefulness of plant assets used to extract natural resources is directly related to
the depletion of a natural resource, their costs are depreciated using the units-of-production
method of depreciation, as long as the assets will not be moved to and used at another site
when extraction of the natural resources is complete.
Answer: True
Blooms: Understand
AICPA BB: Industry
50. The cost of an intangible asset is systematically allocated to depreciation expense over its
estimated useful life.
Answer: False
Blooms: Remember
AICPA BB: Industry
Difficulty: 1 Easy
Topic: Intangible Assets
51. A leasehold refers to the rights the lessor grants to the lessee under the terms of the lease.
Answer: True
Blooms: Remember
AICPA BB: Industry
10-14
AICPA BB: Legal
Difficulty: 1 Easy
10-15
52. Intangible assets are nonphysical assets used in operations that confer on their owners’
long-term rights, privileges, or competitive advantages.
Answer: True
Blooms: Remember
AICPA BB: Industry
AICPA BB: Legal
Difficulty: 1 Easy
53. Since goodwill is an intangible, it is amortized each year using the straight-line method,
the same as other intangibles are amortized.
Answer: False
Blooms: Remember
AICPA BB: Industry
AICPA BB: Legal
Difficulty: 1 Easy
54. A patent is an exclusive right granted to its owner to manufacture and sell a patented
device or to use a process for 20 years.
Answer: True
Blooms: Remember
AICPA BB: Industry
AICPA BB: Legal
Difficulty: 1 Easy
10-16
55. A copyright gives its owner the exclusive right to publish and sell a musical, literary, or
artistic work during the life of the creator plus 17 years.
Answer: False
Blooms: Remember
AICPA BB: Industry
AICPA BB: Legal
Difficulty: 1 Easy
56. A trademark is an exclusive right granted to its owner to publish and sell a musical,
literary, or artistic work during the life of the creator plus 70 years.
Answer: False
Blooms: Remember
AICPA BB: Industry
AICPA BB: Legal
Difficulty: 1 Easy
Multiple Choice Questions
57. Plant assets are defined as:

A. Tangible assets that have a useful life of more than one accounting period and are used in
the operation of a business.
B. Current assets.
C. Held for sale.
D. Intangible assets used in the operations of a business that have a useful life of more than
one accounting period.
E. Tangible assets used in the operation of business that have a useful life of less than one
accounting period.
Answer: A
Blooms: Remember
AICPA BB: Industry
Difficulty: 1 Easy
10-17
58. One characteristic of plant assets is that they are:
A. Current assets.
B. Used in operations.
C. Natural resources.
D. Long-term investments.
E. Intangible.
Answer: B
Blooms: Remember
AICPA BB: Industry
Difficulty: 1 Easy
59. The relevant factors in computing depreciation do not include:

A. Cost.
B. Salvage value.
C. Useful life.
D. Depreciation method.
E. Market value.
Answer: E
Blooms: Remember
AICPA BB: Industry
Difficulty: 1 Easy
60. Salvage value is:

A. Not a factor relevant to determining depletion.
B. A factor relevant to amortizing an intangible asset with an indefinite life.
C. An estimate of the asset’s value at the end of its benefit period.
D. A factor relevant to determining depreciation under MACRS.
E. A factor relevant to determining depreciation that cannot be revised during an asset’s
useful life.
Answer: C
Blooms: Remember
AICPA BB: Industry
10-18
61. Depreciation:
A. Measures the decline in market value of an asset.
B. Measures physical deterioration of an asset.
C. Is the process of allocating the cost of a plant asset to expense.
D. Is an outflow of cash from the use of a plant asset.
E. Is applied to land.
Answer: C
Blooms: Remember
AICPA BB: Industry
Difficulty: 1 Easy
62. The useful life of a plant asset is:

A. The length of time it is productively used in a company’s operations.
B. Never related to its physical life.
C. Its productive life, but not to exceed one year.
D. Determined by the FASB.
E. Determined by law.
Answer: A
Blooms: Remember
AICPA BB: Industry
Difficulty: 1 Easy
10-19
63. The term inadequacy, as it relates to the useful life of an asset, refers to:
A. The insufficient capacity of a company’s plant assets to meet the company’s growing
production demands.
B. An asset that is worn out.
C. An asset that is no longer useful in producing goods and services.
D. The condition where the salvage value is too small to replace the asset.
E. The condition where the asset’s salvage value is less than its cost.
Answer: A
Blooms: Remember
AICPA BB: Industry
Difficulty: 1 Easy
64. The term, obsolescence, as it relates to the useful life of an asset, refers to:
A. The end of an asset’s useful life.
B. A plant asset that is no longer useful in producing goods and services with a competitive
advantage.
C. The insufficient capacity of a company’s plant assets to meet the company’s productive
demands.
D. An asset’s salvage value becoming less than its replacement cost.
E. Intangible assets that have been fully amortized.
Answer: B
Blooms: Remember
AICPA BB: Industry
Difficulty: 1 Easy
10-20
65. Once the estimated depreciation expense for an asset is calculated:
A. It cannot be changed, based on the historical cost principle.
B. It may be revised based on new information.
C. Any changes are accumulated and recognized when the asset is sold.
D. The estimate itself cannot be changed; however, new information should be disclosed in
financial statement footnotes.
E. It cannot be changed, based on the consistency principle.
Answer: B
Blooms: Understand
AICPA BB: Industry
Topic: Change in Estimates
66. A machine originally had an estimated useful life of 6 years, but after 4 complete years, it
was decided that the original estimate of useful life should have been 10 years. At that point
the remaining cost to be depreciated should be allocated over the remaining:
A. 2 years.
B. 4 years.
C. 6 years.
D. 16 years.
E. 10 years.
Answer: C
Blooms: Apply
AACSB: Analytic
AICPA BB: Industry
Difficulty: 3 Hard
Feedback: 10 year revised life – 4 years depreciated = 6 years remaining
10-21
67. A change in an accounting estimate is:
A. Reflected in past financial statements.
B. Reflected in future financial statements and also requires modification of past statements.
C. Reflected in current and future years’ financial statements, not in prior statements.
D. Not allowed under current accounting rules.
E. Considered an error in the financial statements.
Answer: C
Blooms: Understand
AICPA BB: Industry
68. When originally purchased, a vehicle costing $23,000 had an estimated useful life of 8
and an estimated salvage value of $1,500. After 4 years of straight-line depreciation, the
asset’s total estimated useful life was revised from 8 years to 6 years and there was no change
in the estimated salvage value. The depreciation expense in year 5: equals:
A. $ 5,375.00.
B. $ 2,687.50.
C. $ 5,543.75.
D. $10,750.00.
E. $ 2,856.25.
Answer: A
Blooms: Apply
AACSB: Analytic
AICPA BB: Industry
Difficulty: 3 Hard
Feedback: Accumulated Depreciation through the end of year 4:

(Cost of Asset – Salvage Value)/Estimated Useful Life * Years Elapsed
($23,000 – $1,500)/8 * 4 = $10,750
Depreciation in Year 5 = (Cost of Asset – Accumulated Depreciation – Salvage

Value)/Remaining Estimated Useful Life
($23,000 – $10,750 – $1,500)/2 = $5,375
10-22
69. A company used straight-line depreciation for an item of equipment that cost $12,000, had
a salvage value of $2,000 and a five-year useful life. After depreciating the asset for three
complete years, the salvage value was reduced to $1,200 but its total useful life remained the
same. Determine the amount of depreciation to be charged against the equipment during each
of the remaining years of its useful life:
A. $1,000.
B. $1,800.
C. $5,400.
D. $2,400.
E. $2,000.
Answer: D
Blooms: Apply
AACSB: Analytic
AICPA BB: Industry
Difficulty: 3 Hard
Feedback: Accumulated Depreciation through the end of year 3:

(Cost of Asset – Salvage Value)/Estimated Useful Life * Years Elapsed
($12,000 – $2,000)/5 * 3 = $6,000
Depreciation, years 4 through 5 = (Cost of Asset – Accumulated Depreciation – Salvage

Value)/Remaining Estimated Useful Life
($12,000 – $6,000 – $1,200)/2 = $2,400
10-23
70. Beckman Enterprises purchased a depreciable asset on October 1, Year 1 at a cost of
$100,000. The asset is expected to have a salvage value of $20,000 at the end of its five-year
useful life. If the asset is depreciated on the double-declining-balance method, the asset’s
book value on December 31, Year 2 will be:
A. $36,000
B. $42,000
C. $54,000
D. $16,000
E. $90,000
Answer: C
Blooms: Apply
AACSB: Analytic
AICPA BB: Industry
Difficulty: 3 Hard
Feedback:
Period BOY BV DB Rate Depreciation Expense EOY BV
Year 1 100,000 40% $40,000 * 3/12 = $10,000 $90,000
Year 2 90,000 40% 36,000 54,000
Accordingly, the asset’s book value at the end of Year 2 would be $54,000.
BOY BV = Beginning of Year Book Value
DB Rate = Declining Balance Rate of Depreciation (1/5 * 2)
EOY BV = End of Year Book Value
10-24
71. Peavey Enterprises purchased a depreciable asset for $22,000 on April 1, Year 1. The
asset will be depreciated using the straight-line method over its four-year useful life.
Assuming the asset’s salvage value is $2,000, what will be the amount of accumulated
depreciation on this asset on December 31, Year 3?
A. $5,000
B. $15,000
C. $15,125
D. $20,000
E. $13,750
Answer: E
Blooms: Apply
AACSB: Analytic
AICPA BB: Industry
Difficulty: 3 Hard
Feedback: Year 1 [($22,000 – $2,000)/4] * 9/12 = $3,750

Year 2 ($22,000 – 2,000)/4 = $5,000
Year 3 $5,000
Accumulated $13,750
10-25
72. Peavey Enterprises purchased a depreciable asset for $22,000 on April 1, Year 1. The
asset will be depreciated using the straight-line method over its four-year useful life.
Assuming the asset’s salvage value is $2,000, Peavey Enterprises should recognize
depreciation expense in Year 2 in the amount of:
A. $10,000
B. $ 5,000
C. $ 5,500
D. $20,000
E. $ 9,250
Answer: B
Bloom’s: Apply
AACSB: Analytic
AICPA BB: Industry
Feedback: Depreciation Expense = (Cost – Salvage Value)/Estimated Useful Life

Depreciation Expense = ($22,000 – $2,000)/4 = $5,000
10-26
73. The following information is available on a depreciable asset owned by Mutual Savings
Bank:
Purchase date June 1, Year 1
Purchase price $85,000
Salvage value $10,000
Useful life 10 years
Depreciation method straight-line
The asset’s book value is $70,000 on June 1, Year 3. On that date, management determines
that the asset’s salvage value should be $5,000 rather than the original estimate of $10,000.
Based on this information, the amount of depreciation expense the company should recognize
during the last six months of Year 3 would be:
A. $8,125.00
B. $7,375.00
C. $4,062.50
D. $3,750.00
E. $7,812.50
Answer: C
Blooms: Apply
AACSB: Analytic
AICPA BB: Industry
Difficulty: 3 Hard
Feedback: [(Year 3 book value – revised salvage value / useful life] * fraction of year = second half
of Year 3 depreciation
[($70,000 – $5,000)/8] * 6/12 = $4,062.50.
74. A benefit of using an accelerated depreciation method is that:

A. It is preferred by the tax code.
B. It is the simplest method to calculate.
C. It yields larger depreciation expense in the early years of an asset’s life.
D. It yields a higher income in the early years of the asset’s useful life.
E. The results are identical to straight-line depreciation.
Answer: C
Blooms: Remember
AACSB: Analytic
AICPA BB: Industry
Difficulty: 1 Easy
10-27
75. The modified accelerated cost recovery system (MACRS):
A. Is included in the U.S. federal income tax rules for depreciating assets.
B. Is an outdated system that is no longer used by companies.
C. Is required for financial reporting.
D. Is identical to units of production depreciation.
E. Does not allow partial year depreciation.
Answer: A
Blooms: Remember
AICPA BB: Industry
AICPA BB: Legal
Difficulty: 1 Easy
76. The straight-line depreciation method and the double-declining-balance depreciation

method:
A. Produce the same total depreciation over an asset’s useful life.
B. Produce the same depreciation expense each year.
C. Produce the same book value each year.
D. Are acceptable for tax purposes only.
E. Are the only acceptable methods of depreciation for financial reporting.
Answer: A
Blooms: Understand
AICPA BB: Industry
77. Total asset turnover is used to evaluate:

A. The efficient use of assets to generate sales.
B. The necessity for asset replacement.
C. The number of times operating assets were sold during the year.
D. The cash flows used to acquire assets.
E. The relation between asset cost and book value.
Answer: A
Blooms: Understand
10-28
78. A total asset turnover ratio of 3.5 indicates that:
A. For every $1 in sales, the firm acquired $3.50 in assets during the period.
B. For every $1 in assets, the firm produced $3.50 in net sales during the period.
C. For every $1 in assets, the firm earned gross profit of $3.50 during the period.
D. For every $1 in assets, the firm earned $3.50 in net income.
E. For every $1 in assets, the firm paid $3.50 in expenses during the period.
Answer: B
Blooms: Understand
AACSB: Analytic
79. The calculation of total asset turnover is:

A. Gross profit divided by average total assets.
B. Average total assets divided by gross profit.
C. Net sales divided by average total assets.
D. Average total assets multiplied by net sales.
E. Net assets multiplied by total assets.
Answer: C
Blooms: Remember
Difficulty: 1 Easy
10-29
80. A company had average total assets of $887,000. Its gross sales were $1,090,000 and its
net sales were $1,000,000. The company’s total asset turnover equals:
A. 0.81.
B. 0.89.
C. 1.09.
D. 1.13.
E. 1.23.
Answer: D
Blooms: Apply
AACSB: Analytic
Difficulty: 3 Hard

Total Asset Turnover = $1,000,000/$887,000 = 1.13
81. Spears Co. had net sales of $35,400 million. Its average total assets for the period were
$14,700 million. Spears’ total asset turnover equals:
A. 0.42.
B. 0.35.
C. 1.48.
D. 2.41.
E. 3.54.
Answer: D
Blooms: Apply
AACSB: Analytic

10-30
82. Land improvements are:
A. Assets that increase the usefulness of land, and like land, are not depreciated.
B. Assets that increase the usefulness of land, but that have a limited useful life and are
subject to depreciation.
C. Included in the cost of the land account.
D. Expensed in the period incurred.
E. Also called basket purchases.
Answer: B
Blooms: Remember
AICPA BB: Industry
Difficulty: 1 Easy
83. Which of the following are not classified as plant assets?

A. Land.
B. Land improvements.
C. Buildings.
D. Machinery and equipment.
E. Patent.
Answer: E
Blooms: Remember
AICPA BB: Industry
Difficulty: 1 Easy
84. The cost of land would not include:

A. Purchase price.
B. Cost of parking lot lighting.
C. Costs of removing existing structures.
D. Fees for insuring the title.
E. Government assessments.
Answer: B
Blooms: Remember
AICPA BB: Industry
Difficulty: 1 Easy
10-31
85. A company paid $150,000, plus a 7% commission and $5,000 in closing costs for a
property. The property included land appraised at $87,500, land improvements appraised at
$35,000, and a building appraised at $52,500. What should be the allocation of this property’s
costs in the company’s accounting records?
A. Land $75,000; Land Improvements, $30,000; Building, $45,000.
B. Land $75,000; Land Improvements, $30,800; Building, $46,200.
C. Land $82,750; Land Improvements, $33,100; Building, $49,650.
D. Land $80,250; Land Improvements, $32,100; Building, $48,150.
E. Land $77,500; Land Improvements; $31,000; Building; $46,500.
Answer: C
Blooms: Apply
AACSB: Analytic
AICPA BB: Industry
Difficulty: 3 Hard
Feedback:
Total cost to allocate = $150,000 + ($150,000 * .07) + 5,000 = $165,500
Appraisal
Value %
Land $ 87,500 /$175,000 = 50%
Land Improvements 35,000 /$175,000 = 20%
Building 52,500 /$175,000 = 30%
Total $175,000
Appraisal Total
Value % Cost Allocated
Land $ 87,500 50% $165,500 $ 82,750
Land Improvements 35,000 20% $165,500 33,100
Building 52,500 30% $165,500 49,650
Total $175,000 $165,500
10-32
86. Merchant Company purchased property for a building site. The costs associated with the
property were:
Purchase price…………………………………………… $185,000

Real estate commissions ................................................. 15,000
Legal fees 700
Expenses of clearing the land .......................................... 2,000
Expenses to remove old building .................................... 4,000
What portion of these costs should be allocated to the cost of the land and what portion should
be allocated to the cost of the new building?
A. $187,700 to Land; $19,000 to Building.
B. $200,700 to Land; $6,000 to Building.
C. $200,000 to Land; $6,700 to Building.
D. $185,000 to Land; $21,700 to Building.
E. $206,700 to Land; $0 to Building.
Answer: E
Blooms: Apply
AACSB: Analytic
AICPA BB: Industry
Difficulty: 3 Hard
Feedback: Total cost = $185,000 + $15,000 + $700 + $2,000 + $4,000 = $206,700

The entire amount of the cost should be allocated to the land, since the new building is not yet
constructed.
10-33
87. A company purchased property for $100,000. The property included a building, a parking
lot, and land. The building was appraised at $62,000; the land at $35,000, and the parking lot
at $18,000. Land should be recorded in the accounting records with an allocated cost of:
A. $ 0.
B. $ 30,435.
C. $ 35,000.
D. $ 46,087.
E. $100,000.
Answer: B
Blooms: Apply
AACSB: Analytic
AICPA BB: Industry
Difficulty: 3 Hard
Feedback: $100,000 * [$35,000/($62,000 + $35,000 + $18,000)] = $30,435
88.The formula to compute annual straight-line depreciation is:

A. Depreciable cost divided by useful life in units.
B. (Cost plus salvage value) divided by the useful life in years.
C. (Cost minus salvage value) divided by the useful life in years.
D. Cost multiplied by useful life in years.
E. Cost divided by useful life in units.
Answer: C
Blooms: Remember
AICPA BB: Industry
Difficulty: 1 Easy
10-34
89. The total cost of an asset less its accumulated depreciation is called:
A. Historical cost.
B. Book value.
C. Present value.
D. Current (market) value.
E. Replacement cost.
Answer: B
Blooms: Remember
AICPA BB: Industry
Difficulty: 1 Easy
90. The depreciation method that charges the same amount of expense to each period of the
asset’s useful life is called:
A. Accelerated depreciation.
B. Declining-balance depreciation.
C. Straight-line depreciation.
D. Units-of-production depreciation.
E. Modified accelerated cost recovery system (MACRS) depreciation.
Answer: C
Blooms: Remember
AICPA BB: Industry
Difficulty: 1 Easy
10-35
91. The depreciation method that allocates an equal portion of the total depreciable cost for a
plant asset to each unit produced is called:
A. Accelerated depreciation.
Answer: D
Blooms: Remember
AICPA BB: Industry
Difficulty: 1 Easy
92. The depreciation method in which a plant asset’s depreciation expense for a period is
determined by applying a constant depreciation rate to the asset’s beginning-of-period book
value is called:
A. Book value depreciation.
Answer: B
Blooms: Remember
AICPA BB: Industry
Difficulty: 1 Easy
10-36
93. The depreciation method that produces larger depreciation expense during the early years
of an asset’s life and smaller expense in the later years is a (an):
A. Accelerated depreciation method.
B. Book value depreciation method.
C. Straight-line depreciation method.
D. Units-of-production depreciation method.
E. Unrealized depreciation method.
Answer: A
Blooms: Remember
AICPA BB: Industry
Difficulty: 1 Easy
94. A company purchased a delivery van for $28,000 with a salvage value of $3,000 on
September 1, Year 1. It has an estimated useful life of 5 years. Using the straight-line method,
how much depreciation expense should the company recognize on December 31, Year 1?
A. $5,000.
B. $1,667.
C. $1,400.
D. $1,250.
E. $2,067.
Answer: B
Blooms: Apply
AACSB: Analytic
AICPA BB: Industry
Feedback: Depreciation Expense = (Cost – Salvage Value)/Est Useful Life * Length of Ownership
Depreciation Expense = ($28,000 – $3,000)/5 * 4/12; Depreciation Expense = $1,667
10-37
95. Marlow Company purchased a point of sale system on January 1 for $3,400. This system
has a useful life of 10 years and a salvage value of $400. What would be the depreciation
expense for the second year of its useful life using the double-declining-balance method?
A. $ 680.
B. $ 480.
C. $ 544.
D. $600.
E. $300.
Answer: C
Blooms: Apply
AACSB: Analytic
AICPA BB: Industry
Difficulty: 3 Hard
Feedback: Depreciation Expense = Book Value * Double Straight-line Rate

Depreciation Expense = $3,400 * (2 * 10%) = $680 (Year 1, depreciation)
Depreciation Expense = Book Value * Double Straight-line Rate

Depreciation Expense = ($3,400 – $680) * (2 * 10%) = $544 (Year 2, depreciation)
has a useful life of 10 years and a salvage value of $400. What would be the depreciation
expense for the first year of its useful life using the double-declining-balance method?
A. $ 680.
B. $2,320.
C. $2,720.
D. $600.
E. $300.
Answer: A
Blooms: Apply
AACSB: Analytic
AICPA BB: Industry

10-38
has a useful life of 10 years and a salvage value of $400. What would be the accumulated
depreciation at the end of the second year of its useful life using the double-declining-balance
method?
A. $2,176.
B. $ 544.
C. $1,200.
D. $ 600.
E. $1,224.
Answer: E
Blooms: Apply
AACSB: Analytic
AICPA BB: Industry
Difficulty: 3 Hard

Depreciation Expense = Book Value * Double Straight-line Rate

Depreciation Expense = ($3,400 – $680) * (2 * 10%) = $544 (Year 2, depreciation)
$680 + $544 = $1,224 Accumulated Depreciation
has a useful life of 10 years and a salvage value of $400. What would be the book value of the
asset at the end of the first year of its useful life using the double-declining-balance method?
A. $ 680.
B. $2,320.
C. $2,720.
D. $600.
E. $300.
Answer: C
Blooms: Apply
AACSB: Analytic
AICPA BB: Industry
Feedback: Depreciation Expense = Beginning Book Value * Double Straight-line Rate

Book value = Cost – Accumulated depreciation
$3,400 – $680 = $2,720
10-39
99. A company purchased a weaving machine for $190,000. The machine has a useful life of
8 years and a residual value of $10,000. It is estimated that the machine could produce 75,000
bolts of woven fabric over its useful life. In the first year, 15,000 bolts were produced. In the
second year, production increased to 19,000 units. Using the units-of-production method,
what is the amount of depreciation expense that should be recorded for the second year?
A. $48,133.
B. $45,600.
C. $22,500.
D. $23,750.
E. $81,600.
Answer: B
Blooms: Apply
AACSB: Analytic
AICPA BB: Industry
Feedback: Depreciation Expense = [(Cost – Salvage Value)/Estimated Useful Life (in units)] * Units
Produced
Depreciation per unit = ($190,000 – $10,000) /75,000 units = $2.40 per unit
Depreciation Expense = $2.40 * 19,000 = $45,600
what is the amount of accumulated depreciation at the end of the second year?
A. $48,133.
B. $45,600.
C. $86,133.
D. $23,750.
E. $81,600.
Answer: E
Blooms: Apply
AACSB: Analytic
AICPA BB: Industry
Difficulty: 3 Hard
Feedback: Depreciation Expense = [(Cost – Salvage Value)/Estimated Useful Life (in units)] * Units
Produced
Accumulated Depreciation = $2.40 * (15,000+ 19,000) = $81,600
10-40
what is the book value of the machine at the end of the second year?
A. $108,400.
B. $144,400.
C. $81,600.
D. $190,000.
E. $180,000.
Answer: A
Blooms: Apply
AACSB: Analytic
AICPA BB: Industry
Difficulty: 3 Hard
Feedback: Depreciation Expense = [(Cost – Salvage Value)/Estimated Useful Life in Units] * Units
Produced
Accumulated Depreciation = $2.40 * (15,000+ 19,000) = $81,600
Book Value = Cost – Accumulated Depreciation = $190,000 – $81,600 = $108,400
102. Revenue expenditures:

A. Are additional costs of plant assets that do not materially increase the asset’s life or its
productive capabilities.
B. Are known as balance sheet expenditures because they relate to plant assets.
C. Extend the asset’s useful life.
D. Substantially benefit future periods.
E. Are debited to asset accounts when incurred.
Answer: A
Blooms: Remember
AICPA BB: Industry
Difficulty: 1 Easy
10-41
103. Another name for a capital expenditure is:
A. Revenue expenditure.
B. Asset expenditure.
C. Long-term expenditure.
D. Contributed capital expenditure.
E. Balance sheet expenditure.
Answer: E
Blooms: Remember
AICPA BB: Industry
Difficulty: 1 Easy
104. Extraordinary repairs:

A. Are revenue expenditures.
B. Extend the useful life of an asset beyond its original estimate.
C. Are credited to accumulated depreciation.
D. Are additional costs of plants assets that do not materially increase the asset’s life.
E. Are expensed when incurred.
Answer: B
Blooms: Remember
AICPA BB: Industry
Difficulty: 1 Easy
105. Which of the following is an example of an extraordinary repair?

A. New tires for a truck.
B. Replacement of all florescent light tubes in an office.
C. Carpet cleaning and repair.
D. Replacing the roof on a manufacturing warehouse.
E. Routine machine maintenance.
Answer: D
Blooms: Understand
AICPA BB: Industry
Difficulty: Medium
10-42
106. Ordinary repairs meet all of the following criteria except:
A. Are expenditures to keep an asset in normal operating condition.
B. Are necessary if an asset is to perform to expectations over its useful life.
C. Extend the useful life of an asset beyond its original estimate
D. Include cleaning, lubricating, and normal adjusting.
E. Are treated as expenses.
Answer: C
Blooms: Remember
AICPA BB: Industry
Difficulty: 1 Easy
107. Betterments are:

A. Expenditures making a plant asset more efficient or productive.
B. Also called ordinary repairs.
C. Always increase an asset’s life.
D. Revenue expenditures.
E. Credited against the asset account when incurred.
Answer: A
Blooms: Remember
AICPA BB: Industry
Difficulty: 1 Easy
10-43
108. An asset’s book value is $18,000 on December 31, Year 5. The asset has been
depreciated at an annual rate of $3,000 on the straight-line method. Assuming the asset is sold
on December 31, Year 5 for $15,000, the company should record:
A. A loss on sale of $12,000.
B. A gain on sale of $12,000.
C. Neither a gain nor a loss is recognized on this transaction.
D. A gain on sale of $3,000.
E. A loss on sale of $3,000.
Answer: E
Blooms: Apply
AACSB: Analytic
AICPA BB: Industry
Difficulty: 3 Hard
Feedback: Selling price $15,000 – $18,000 Book value = $3,000 Loss.
109. Martinez owns an asset that cost $87,000 with accumulated depreciation of $40,000. The
company sells the equipment for cash of $42,000. At the time of sale, the company should
record:
A. A gain on sale of $2,000.
B. A loss on sale of $2,000.
C. A loss on sale of $5,000.
Answer: C
Blooms: Apply
AACSB: Analytic
AICPA BB: Industry
Feedback: Selling price $42,000 – Book value ($87,000 – $40,000) = $5,000 loss.
10-44
110. Martinez owns machinery that cost $87,000 with accumulated depreciation of $40,000.
The company sells the machinery for cash of $42,000. The journal entry to record the sale
would include:
A. A credit to Accumulated Depreciation of $40,000
B. A credit to Gain on Sale of $2,000.
C. A credit to Machinery of $47,000.
D. A debit to Cash of $42,000.
E. A debit to Accumulated Depreciation of $47,000.
Answer: D
Blooms: Apply
AACSB: Analytic
AICPA BB: Industry
Feedback: Selling price $42,000 – Book value ($87,000 – $40,000) = $5,000 Loss.
111. An asset’s book value is $36,000 on January 1, Year 6. The asset is being depreciated
$500 per month using the straight-line method. Assuming the asset is sold on July 1, Year 7
for $25,000, the company should record:
A. Neither a gain or loss is recognized on this type of transaction.
B. A gain on sale of $2,000.
C. A loss on sale of $1,000.
Answer: E
Blooms: Apply
AACSB: Analytic
AICPA BB: Industry
Difficulty: 3 Hard
Feedback: If the asset’s book value is $36,000 on January 1, Year 6 and is being depreciated $500
per month, $9,000 (18 x $500) of additional depreciation expense would be recognized by July 1, Year
7. Thus, the asset’s book value on that date would be $27,000. If the asset is sold for $25,000, a loss
on sale of $2,000 should be recognized.
10-45
Another random document with
no related content on Scribd:
que si me la hallaban quedaria
pobre y si moria sin que supiesen
donde estaba pesábame pensar
que se habia de perder. Pues
venido á mi patria y no sin
congoja y dolor, venida la noche,
cuando todos estaban en silencio
y quietud, levantabame yo y abria
las huesas adonde tenia el tesoro
enterrado y en una mesa
comenzabalo á contar y
mirandolo me pesaba porque lo
poseia, pues en conservarlo me
daba tanta congoja y dolor, y
despues de vuelto á la tierra no
podia dormir considerando si
estaba seguro allí, si los cofres en
que estaba la plata y aparador los
podian hurtar; en viendo un raton
ó una mosca luego saltaba de la
cama pensando que ladrones me
hurtaban y robaban; voceaba con
gran priesa y espanto y levantada
mi gente decianme denuestos é
injurias, que aun agora con ser
gallo no los querria sufrir,
llamabanme abariento rixoso
miserable y que ellos mismos me
robarian con enojo de mi misera
abaricia, dezian que no querian
serbirme y tenian mucha razon
porque muchas noches los azia
lebantar cinco y seys vezes que
no los dexaba dormir: ¿Quién
contaria agora, Micillo, por orden
los sobresaltos, las malas
comidas y bebidas que yo pasé?
Hallarias de verdad que son los
ricos verdaderos infelices sin
algun descanso ni plazer porque
se les va la gloria y el descanso
por otros albañares de
asechanzas que no se paresce,
ladrillados por encima con
lisonjas. E quánto mejor duerme
el pobre que no el que tiene de
guardar con solicitud lo que con
trabajo ganó y con dolor de lo
dejar. El amigo del pobre será
berdadero y el del rico simulado y
fingido, el pobre es amado por su
persona y el rico por su azienda,
nunca el rico oye verdad, todos le
dizen lisonjas y todos les
maldizen en ausencia por la
enbidia que tienen á su posesion.
Con gran dificultad allarás en el
mundo un rico que no confiese
que le será mejor estar en su
mediano estado e en esta
pobleza, porque en la berdad las
riquezas no hazen rico sino
oqupado, no hazen Señor, sino
mayordomo, y más son siervos de
sus riquezas y ellas mesmas les
acarrean la muerte, quitan el
plazer, borran las buenas
costumbres; ninguna cosa es tan
contraria del sosiego y buena bida
quel guardar y arquerir tesoros y
habellos de conservar. Gran
trabajo es sobre todo ver el
honbre veynte hyjos alredor de si
de contino pregon á Dios que yo
me aya de morir porque ellos se
entreguen y hereden mi posesion.
Pues sobre todos mis males te
quiero contar los trabajos que
pasé despues.
CAPITULO X
Que pone como fue casado con

quatro mugeres y lo que le
sucedió con la primera; cosa
de notar.
Yo fui casado con quatro mugeres

mientras bibi, que si me oyes me
maravillaré cómo no lloras como
yo en acordarme de la mala vida
que me dieron porque sepas que
no hay dolor hasta en el casar;
con cuatro mugeres fue casado é
con todas deseando tener paz
mucha nunca me faltó guerra; la
primera con quien me casé se
llamaba Alcybia que por ser fija
de Teodosio Rey, menos preciaba
mis palabras y tenia en poco mis
obras y aun los dioses saben las
palabras que me dezia en
secreto, mis criados saben cómo
me trataba en publico y por que
bia, que procedia su desacato de
ser mejor que yo por ser hyja de
Rey.
CAPITULO XI
Como fue casado la segunda vez

y lo que pasó con la segunda
mujer.
Ya sabras que yo me casé la

segunda vez con mujer que era
mi ygual, que se llamaba Tribuña
hyja de un Tribuno de Jerusalen y
traxo á mi poder el mayor dote
que hasta hoy se halla haver
dado en estas partidas y
pensando que por ser yguales en
personas nos acompañaría la paz
jamás con ella me faltó guerra
diziéndome que guardaba lo mio
sin lo querer comunicar y que
gastaba lo suyo en conbytes con
mujeres públicas y desonestas
haziendo desordenados gastos,
dandome afrentas en lo publico y
amenazas en lo secreto, de
donde nos benia tan cierta la
discordia quando más me era
deseada la conformidad.
Queriendome dar los dioses
entera vengança en ella,
dieronme en ella un hyjo que
despues de sus dias que fueron
brebes heredó los bienes de la
madre por quya muerte
sucedieron en mi; en biendo la
desgracia que habia tenido en las
dos vezes que me abia casado, la
vna por ser la mujer mejor que yo
é la segunda por lo mucho que
me dieron.
CAPITULO XII
Como se casó la tercera vez y lo

que con le sucedio.
Gallo.—Proquré de casarme la
tercera vez con una que se llamó
Laureola hyja de Aureo Consul
que ni en generacion ni estado
era mi ygual, salbo que era la
más apuesta dama que en toda la
probincia se halló, la qual tomé
porque siendo pobre y no de tan
buena parte no tenia causa de
conquistarme como las pasadas.
Quiero dezir, amigo Micyllo, sy
con las pasadas habia tenido
trabajada bida, con aquella no me
faltaron tragos de muerte, porque
sintiendose tan soblimada en
hermosura y a mi con sennales
de vejez en la cara y con algunas
canas y con algun desquydo della
en la cama y sin dientes para
comer, dezia cosas abominables
contra su padre, porque siendo
ella tan hermosa la habia casado
con honbre tan feo, pudiendo
enplearla en persona de mayor
merescimiento y de menor edad
con que ella pudiera mejor gozar
su edad é hermosura; digote en
verdad, Micillo amigo, que
haziendome vna mannana de
dormido le oí dezir estando en
contemplacion: ¡oh! malandantes
sean los dioses y todo esto que
permiten y ordenan, pues
ordenaron y permitieron que mi
gentileza y hermosura se pusiese
en poder deste monstruo, el qual
piensa que con los bienes me
paga y que con el buen
tratamiento me contenta y con las
palabras me satisfaze. Sy supiera
en quanto tengo sus riquezas y el
caso que hago de su tratamiento
y lo que estimo sus buenas
palabras, no haria bida conmigo,
é maldita sea la donzella que se
casa con quien no conosce
porque no se vea engannada y
lastimada segun yo agora;
pluguiera á los dioses que me
traxeran agora no á poder de
quien tanto duerme y de quien tan
poco bela, bueno para lo que le
cumple, malo para lo que le
conbiene, diestro á las malicias,
torpe en las buenas obras. Bien
penso Areo Consul, mi padre, que
en darme este marido me hazia
gran bien y merced; bien paresce
que tubo mayor quydado de su
probecho que dolor de mi daño.
Si tubiera memoria de mi bien no
me procurara tanto mal; penso
que me casaba con él para tener
descanso, yo pienso que jamas
me faltará trabajo, porque quien
duerme despues de haber
dormido y no trabaja despues de
haber holgado como este bestiglo
haze ¿qué puedo esperar del sino
que el bibira con su desquydo y
yo morire con mi quydado? a él
se pasa en sueños la vida y a mi
se me trasporta en trabajos el
tiempo, maldita sea yo quando
dixe de sy; ¿por qué no dixe de
no? porque me matara un honbre
bibo y no me diera vida un
hombre muerto; aunque creo que
la vida que me dara será tal como
de las otras dos mugeres que ha
tenido; pluguiese á los dioses que
asi como agora está se quedase y
que nunca mas mis ojos le viesen
despierto. Y quando vi, Micillo,
que tan deshonestas cosas dezia
hize que despertaba por no oyr
otras peores en viendome
despierto; lebantóse de apar de
mí más enojada que contenta,
diziendo que me levantase en
hora mala que se me pasaba el
tiempo en dormir, sobre lo qual
benimos en tanta descordia que
no descansé hasta que puse las
manos en ella y de aquel enojo
murio, de cuya muerte y no
menos de la vida quedé con tal
escarmiento que acordandome de
aquella muger y no poniendo en
olbido las otras propuse de hacer
vida solo y no mal acompañado, y
no queriendo olbidarme la
rigorosa fortuna de contentarse
con el mal pasado me dieron a
Coridona por muger, con la qual
por...
CAPITULO XIII
Como casó la quarta vez y lo que

con esta muger le sucedio.
Gallo.—Y ansi no quiriendo

olbidarme la rigurosa fortuna de
contentarse con el mal pasado
me dieron a Coridona por muger,
con la qual por su buena fama
casé, porque ni era hermosa ni
fea, ni tan poco baxa de estado ni
alta de generacion y antes pobre
que rica, y si con ella casé no
pienso, amigo Micillo, que lo
causó el apetito de la voluntad ni
aun el contento que me quedó de
las mujeres pasadas, salvo por el
deseo que tenia de haber hijos y
tambien por la necesidad que
tenia de la guarda de mis bienes y
por otras causas que son
legitimas para ello y tambien
porque pensaba que no teniendo
alguna cosa de las que las otras
pasadas tenian no me daría la
vida que las otras me daban, en
especial siendo en todas sus
operaciones la mejor y mas sana
donzella que creo en el mundo se
hallase; mas quiero que sepas,
Micillo, que si me guerreó la
primera por ser de mejor parte
que yo y la segunda por ser el
dote tan grande que me dio y la
tercera por la gran hermosura que
poseyó, que tambien me dio
guerra Coridona porque muy
buena se halló. La qual quando
guerrear me queria me ponia
delante el tratamiento que las
otras mujeres pasadas me
hazian, diciendome: ni vos me
meresceys ni ellas fueron mis
yguales, porque aunque en linaje
la una me hizo ventaja y la otra en
riquezas y la otra en hermosura,
yo se la hago á ellas en ser muy
mejor de mi persona y condicion
que ninguna dellas, porque si la
primera os trató con poca estima
yo os trato con mucha, y si la
segunda os pedia quenta en qué
dispendiays sus bienes yo huelgo
que dispendiays los vuestros; y si
la tercera os agrabiaba con sobra
de palabras yo os sirvo con sobra
de buenas obras; de tal manera
que apenas le hablaba con
paciencia, quando luego me
respondia con yra diciendome:
peores afrentas que las pasadas
mujeres habia menester yo que
no della; que ellas me trataban
como yo merescia; de donde
venia que ella por mucho hablar,
yo por poco sufrir le daba algunos
castigos y venia en tanta
diferencia con ella y en tanta
guerra y discordia que parescia
que era más que no las pasadas,
y aun digote, amigo, en verdad
que fueron mayores las que
tubimos despues que engendró
un hijo, que quisimos mucho, y
aun mucho, mas á menudo
reñiamos que antes que lo
hubiese; lo uno por el preñado; lo
otro porque se tenia por muy
buena no osaba hablarle lo que
me combenia por no venir con
ella en enojo; en fin ella se murio
y si más me durara yo me
enterrara vivo, porque no me
aquerdo estar dia sin pasion ni
noche sin renzilla, y yo quedé
della tan hostigado que me
paresce que hace mas el hombre
que sufre á la muy buena mujer
que la mujer que sufre al mal
varon; por que no hay ninguno
por malo que sea que una vez en
el dia no perdona la falta de su
muger, ni ninguna muger por muy
buena que sea que disimule ni
enqubra la quiebra del baron;
nunca vi cordura tan acertada
como lo que hizo Udalio Gario en
Jerusalen cuando fue
importunado por los tribunos que
se casase con Palestina, que
porque no veniese el casamiento
en efeto puso fuego a todos sus
bienes y pregutado porqué lo hizo
responde que porque queria mas
estar pobre y solo que no rico y
mal acompañado, porque sabia
que Palestina era mujer loca y
presuntuosa; y otra cosa hizo
Anteo en Grecia; que por no sufrir
las airadas palabras de Hentria su
mujer se subio á un gran monte y
hizo sacreficio de si mismo
quemandose en un gran fuego;
Fulsio Catulo en Asia que era del
linaje de los partos, viendose
descontento con Mina su mujer
por la mala vida que con ella
tenia, se subio con ella á la mas
alta torre de sus palacios y
diciendo, nunca plega á los
dioses que tú, Mina, des á otro
ningun varon mala vida, ni á mi
buena otra mujer; y acabadas
estas palabras la lanzó de la torre
abajo no quedando él encima.
Mira bien, Micillo, qué felicidad
tienen con sus riquezas los ricos y
qué descanso con las mujeres
que son casadas; mira si tien aqui
qué desear.
Micillo.—¡Oh! mi buen
Pitágoras, cuan notables cosas
has traido á mi noticia; por cierto
á mi me parescen increibles
cuando son tan admirables. Mas
dime agora, porque rescibo gran
deleite [en] te oir, ¿que fueste de
ti despues que fueste Epulon el
rico?
CAPITULO XIV
Como de Epulon fue

transformado en asno; cosa de
notar y gran sentencia.
Gallo.—Oyeme, mi buen Micillo,

que yo te satisfare; sabras que
como complí el espacio de mi
vida en el qual había de dejar de
ser Epulon, fue llevado á los
infiernos á ser sentenciado de mis
costumbres y despues que con
gran compaña de ánimas me
pasó en su barca Aqueron, fue
presentado ante las Furias
infernales Aleto y Tesifone y los
jueces Minos y Pluton, los quales
estaban asentados en un tribunal
cercados de los acusadores y en
siendo empresentado vi ante los
ojos junto todo mi mal, que me
parescio que otra vez pasaba por
él; y como le vi rescebí muy
entrañable dolor, tan grande que
tuviera por bien dejar de ser;
despues que Minos me hubo
desanimado mandó que me
leyesen la sentencia conforme á
su ley é levantóse un viejo calvo
de gran autoridad é abriendo un
libro dijo ansí: ley teneis ¡oh
dioses! conforme á la qual el
mismo se puede condenar; pues
oíd; el viejo en alta voz leyo ansi:
porque los ricos en el mundo
mientras viven cometen
nefandísimos pecados, robos,
usuras, latrocinios, fuerzas,
teniendo á los pobres en
menosprecio, es determinado por
toda nuestra infernal
congregación que sus cuerpos
padezcan penas entre los
condenados y sus ánimas
vuelvan al mundo á informar
cuerpos de asnos, hasta que
conforme á sus obras sea nuestra
voluntad. Y como fuese leida esta
ley, mandó Minos que fuese asno
diez años y luego lo aprobo toda
la congregacion y aulló
Proserpina y ladró muy
fieramente el can Cerbero, porque
se requería esta solenidad porque
fuese alguna cosa firme y
enviolabre en el infierno, y como
no pude suplicar fue sacado de
allí y en esta oportunidad
ofreciose en Egito estar de parto
una burra de un geciano, y como
vino á parir yo me vine á ser el
asno primero que nasció, y
desque yo me vi metido en
cuerpo tan vil pense rebentar de
enojo; mas como vi que era
escusada mi pasion pues traía
poco provecho el mucho me
doler, aunque por una parte
pense dejarme morir de hambre y
no mamar pensandome escapar
de la cruel sentencia, mas desque
consideré que era inviolable ley y
ya estaba determinado en el
senado infernal y como vi que
aquel egicio era rico que me
podia bien mantener determiné de
sufrir con paciencia mi malhadada
suerte, pensando que podia venir
á manos de otro en el mundo que
no me tratase tan bien, y más que
como mi amo me veia pequeño y
bonito y el primero y que con
grandes aullidos me apartaba de
la madre y no queria mamar,
entre tres hermanos mios se
condolia de mi y me traia con
gran piedad á las tetas y puestas
á la boca me las apretaba y
aunque yo no queria me hacia
mamar por fuerza.
Micillo.—¡Oh! donosa
transformacion de rey y filósofo
en asno; ¿y no rescibias en ello
enojo? porque me huelgo en te lo
oir.
Gallo.—Ansi como acaesce
deleitarse el hombre recontando
entre sí aquello que en tiempos
pasados con prospero estado le
acaesció y se regocija en lo
contar de nuevo mill veces á sus
amigos, representándoles
qualquiera particularidad notable
que en ello se ofreciere, ansi sin
ninguna comparacion apasionan
más las adversidades traidas á la
memoria, enojan considerar de
mucho qualquiera miseria y fatiga
que cada cual pasó; mas yo tengo
por bien padescer cualquiera
dolor que de contarte mis trabajos
se me puede seguir, por te
complacer. Y ahora, Micillo,
sabrás que como fue
convalesciendo en edad con gran
regalo como el egicio me criaba,
esforceme á sufrir mi miseria
aunque conosciese mi dolor, y
mientra fue pequeño no tengo
cosa que de contarte sea, porque
con la niñez todos los animales
pasan el mal sin sufrir. Inviábame
con [mis] hermanos al prado y
despues que de mamar y pascer
las yerbas tiernas estábamos
hartos, armabamos batallas por
aquellos campos deleitosos;
corriamos con grandes relinchos y
saltos; ansi veniamos á juntar con
los pechos é boca, peleabamos
sin nos herir y despues con
mucho placer volviamos á
escaramuzar é íbamos á las viñas
y mieses; con gran sabor
hartábamos nuestros estomagos
á nuestro querer, y si los

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Financial Accounting Fundamentals 5th

Edition Wild Test Bank

True / False Questions

Feedback: Total Asset Turnover = Net Sales/Average Total Assets

Feedback: Total Asset Turnover = Net Sales/Average Total Assets

Feedback: Depreciation Expense = (Cost – Salvage Value)/Estimated Useful Life

38. Revenue expenditures are also called balance sheet expenditures.

39. Betterments are a type of capital expenditure.

Multiple Choice Questions

57. Plant assets are defined as:

59. The relevant factors in computing depreciation do not include:

60. Salvage value is:

62. The useful life of a plant asset is:

Feedback: 10 year revised life – 4 years depreciated = 6 years remaining

Feedback: Accumulated Depreciation through the end of year 4:

Depreciation in Year 5 = (Cost of Asset – Accumulated Depreciation – Salvage

Feedback: Accumulated Depreciation through the end of year 3:

Depreciation, years 4 through 5 = (Cost of Asset – Accumulated Depreciation – Salvage

Feedback: Year 1 [($22,000 – $2,000)/4] * 9/12 = $3,750

Feedback: Depreciation Expense = (Cost – Salvage Value)/Estimated Useful Life

74. A benefit of using an accelerated depreciation method is that:

76. The straight-line depreciation method and the double-declining-balance depreciation

77. Total asset turnover is used to evaluate:

79. The calculation of total asset turnover is:

Feedback: Total Asset Turnover = Net Sales/Average Total Assets

Feedback: Total Asset Turnover = Net Sales/Average Total Assets

83. Which of the following are not classified as plant assets?

84. The cost of land would not include:

Purchase price…………………………………………… $185,000

Feedback: Total cost = $185,000 + $15,000 + $700 + $2,000 + $4,000 = $206,700

Feedback: $100,000 * [$35,000/($62,000 + $35,000 + $18,000)] = $30,435

88.The formula to compute annual straight-line depreciation is:

Feedback: Depreciation Expense = Book Value * Double Straight-line Rate

Depreciation Expense = Book Value * Double Straight-line Rate

Feedback: Depreciation Expense = Book Value * Double Straight-line Rate

Feedback: Depreciation Expense = Book Value * Double Straight-line Rate

Depreciation Expense = Book Value * Double Straight-line Rate

$680 + $544 = $1,224 Accumulated Depreciation

Feedback: Depreciation Expense = Beginning Book Value * Double Straight-line Rate

102. Revenue expenditures:

104. Extraordinary repairs:

105. Which of the following is an example of an extraordinary repair?

107. Betterments are:

Feedback: Selling price $15,000 – $18,000 Book value = $3,000 Loss.

Que pone como fue casado con

Yo fui casado con quatro mugeres

Como fue casado la segunda vez

Ya sabras que yo me casé la

Como se casó la tercera vez y lo

Como casó la quarta vez y lo que

Gallo.—Y ansi no quiriendo

Como de Epulon fue

Gallo.—Oyeme, mi buen Micillo,

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