1.Which intangible assets are amortized over their useful life?
A.trademarks
B.goodwill
C.patents
D.all of the above (my answer)
2. On December 31, Strike Company has decided to discard one of its batting cages. The initial cost of the equipment was $215,000 with an accumulated depreciation of $185,000. Depreciation has been taken up to the end of the year. The following will be included in the entry to record the disposal.
A.Accumulated Depreciation Dr. $215,000
B.Loss on Disposal of Asset Dr. $185,000
C.Equipment Cr. $215,000 (my answer)
D.Gain on Disposal of Asset Cr. $30,000
3. If a fixed asset, such as a computer, were purchased on January 1st for $3,750 with an estimated life of 3 years and a salvage or residual value of $150, the journal entry for monthly expense under straight-line depreciation is:
(Note: EOM indicates the last day of each month.)
A.EOM Depreciation Expense 100
Accumulated Depreciation 100 (my answer)
B.EOM Depreciation Expense 1,200
Accumulated Depreciation 1,200
C.EOM Accumulated Depreciation 1,200
Depreciation Expense 1,200
D.EOM Accumulated Depreciation 100
Depreciation Expense 100

