24) The period of time during which interest must be capitalized ends
when
25) Construction of a qualifying asset is started on April 1 and
finished on December 1. The fraction used to multiply an expenditure
made on April 1 to find weighted-average accumulated expenditures
is
26) When funds are borrowed to pay for construction of assets that
qualify for capitalization of interest, the excess funds NOT needed to
pay for construction may be temporarily invested in interest-bearing
securities. Interest earned on these temporary investments should be
27) When a plant asset is acquired by issuance of common stock, the
cost of the plant asset is properly measured by the
28) If an industrial firm uses the units-of-production method for
computing depreciation on its only plant asset, factory machinery, the
credit to accumulated depreciation from period to period during the
life of the firm will
29) The term "depreciable cost," or "depreciable base," as it is used in
accounting, refers to
30) Which of the following most accurately reflects the concept of
depreciation as used in accounting?
31) Prentice Company purchased a depreciable asset for $200,000.
The estimated salvage value is $20,000, and the estimated useful life
is 10 years. The straight-line method will be used for depreciation.
What is the depreciation base of this asset?
32) Pine Company purchased a depreciable asset for $360,000. The
estimated salvage value is $24,000, and the estimated useful life is 8
years. The double-declining balance method will be used for
depreciation. What is the depreciation expense for the second year on
this asset?
33) Bigbie Company purchased a depreciable asset for $600,000. The
estimated salvage value is $30,000, and the estimated useful life is
10,000 hours. Bigbie used the asset for 1,100 hours in the current
year. The activity method will be used for depreciation. What is the
depreciation expense on this asset?
34) The cost of purchasing patent rights for a product that might
otherwise have seriously competed with one of the purchaser's
patented products should be