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Held for sale
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: