Question Details

Which of the following statements is not true when a fully depreciated plant asset 



1.	If a plant asset is sold before it is fully depreciated,

2.	If a plant asset is retired before it is fully depreciated, and the residual value received is less than the asset's book value,

3.	A company sells a plant asset which originally cost ¥210,000 for ¥70,000 on December 31, 2011. The Accumulated Depreciation account had a balance of ¥84,000 after the current year's depreciation of ¥21,000 had been recorded. The company should recognize a

	4.	If disposal of a plant asset occurs during the year, depreciation is

5.	If a fully depreciated plant asset is still used by a company, the

	6.	Which of the following statements is not true when a fully depreciated plant asset is retired?

	7.	If a plant asset is retired before it is fully depreciated, and no residual or scrap value is received,

8.	The book value of an asset will equal its fair value at the date of sale if

	9.	A truck costing $132,000 was destroyed when its engine caught fire. At the date of the fire, the accumulated depreciation on the truck was $60,000. An insurance check for $150,000 was received based on the replacement cost of the truck. The entry to record the insurance proceeds and the disposition of the truck will include a

 10.	On July 1, 2011, Hale Kennels sells equipment for $66,000. The equipment originally cost $180,000, had an estimated 5-year life and an expected residual value of $30,000. The accumulated depreciation account had a balance of $105,000 on January 1, 2011, using the straight-line method. The gain or loss on disposal is

	11.	A loss on disposal of a plant asset is reported in the financial statements

12.	Yanik Company's delivery truck, which originally cost ₤56,000, was destroyed by fire. At the time of the fire, the balance of the Accumulated Depreciation account amounted to ₤38,000. The company received ₤32,000 reimbursement from its insurance company. The gain or loss as a result of the fire was

13.	A truck that cost $21,000 and on which $10,000 of accumulated depreciation has been recorded was disposed of for $9,000 cash. The entry to record this event would include a


14.	A truck that cost $42,000 and on which $35,000 of accumulated depreciation has been recorded was disposed of for $10,500 cash. The entry to record this event would include a

15.	Orr Corporation sold equipment for $12,000. The equipment had an original cost of $36,000 and accumulated depreciation of $18,000. As a result of the sale,

16.	Powell- Courier Service recorded a loss of $4,500 when it sold a van that originally cost $42,000 for $7,500. Accumulated depreciation on the van must have been

17.	A plant asset cost ¥450,000 when it was purchased on January 1, 2004. It was depreciated by the straight-line method based on a 9-year life with no residual value. On June 30, 2011, the asset was discarded with no cash proceeds. What gain or loss should be recognized on the retirement?

	18.	Nicklaus Company has decided to sell one of its old machines on June 30, 2011. The machine was purchased for $120,000 on January 1, 2007, and was depreciated on a straight-line basis for 10 years with no residual value. If the machine was sold for $39,000, what was the amount of the gain or loss recorded at the time of the sale?

19.	On a statement of financial position, natural resources may be described more specifically as all of the following except

20.	Natural resources are



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