50.1K

Verified Solution

Link Copied!

Which of the following assets is not subject to a tion, depletion, or amortization? a. Natural resources b. Land improvements decreasing book value through deprecia- c. Goodwill d. Intangibles 10. Why would a business select an accelerated method of depreciation for tax purposes? a. Accelerated depreciation generates higher depreciation expense immediately and therefore lowers tax payments in the early years of the asset's life. b. MACRS depreciation follows a specific pattern of depreciation. c. Accelerated depreciation is easier to calculate because salvage value is ignored. d. Accelerated depreciation generates a greater amount of depreciation over the life of the asset than does straight-line depreciation. 11. A company purchased an oil well for $210,000. It estimates that the well contains 30,000 barrels, has an eight-year life, and no salvage value. If the company extracts and sells 2,000 barrels of oil in the first year, how much in cost of sales should be recorded? a. $26,250 b. $105,000 c. $21,000 d. $14,000 12. Which item among the following is not an intangible asset? d. A patent e. All of the above are intangible assets. a. Goodwill b. A copyright c. A trademark nt measure of profitability is. quick (acid test) ratio. a. inventory turnover b. return on assets (ROA). d. net sales. H. In 2014, total asset turnover for JBC Company has increased. This means that the a. company has become more effective. b. company has become more efficient. C company has become more effective and more efficient. company has neither become more effective nor more efficient

Answer & Explanation Solved by verified expert

See Answer