Intangible assets used in the operations of a business that have a useful life of more than one accounting period
Tangible assets used in the operation of business that have a useful life of less than one accounting period
Question 21. Question: Many companies use accelerated depreciation in computing taxable income because:
It is required by the tax rules It is required by financial reporting rules
It postpones tax payments until later years and the company can use the resources now to earn additional income before payment is due
Using it causes a company to use higher income in the early years of the asset ' s useful life
The results are identical to straight-line depreciation Question 22. Question: A company purchased a tract of land for its natural resources at a cost of $ 1,500,000. It expects to mine 2,000,000 tons of ore from this land. The salvage value of the land is expected to be $ 250,000. The depletion expense per ton of ore is:
$ 0.75 $ 0.625
Intangible assets used in the operations of a business that have a useful life of more than one accounting period
Tangible assets used in the operation of business that have a useful life of less than one accounting period
Question 21. Question: Many companies use accelerated depreciation in computing taxable income because:
It is required by the tax rules It is required by financial reporting rules
It postpones tax payments until later years and the company can use the resources now to earn additional income before payment is due
Using it causes a company to use higher income in the early years of the asset ' s useful life
The results are identical to straight-line depreciation Question 22. Question: A company purchased a tract of land for its natural resources at a cost of $ 1,500,000. It expects to mine 2,000,000 tons of ore from this land. The salvage value of the land is expected to be $ 250,000. The depletion expense per ton of ore is: