Match the following terms to the appropriate definition:

replication transparency	a. guarantees that all or none of the updates occur in a transaction across a distributed database
unit of work	b. the appearance that a univen transaction is the only transaction running against a distributed database
global transaction	c. treating copies of data as if there were only one copy
concurrency transparency	d. references data at more than one location
replication	e. a sequence of instructions required to process a transaction

An accelerated depreciation method that takes more expense in the first few years of the asset’s life is ________.

A. units-of-production depreciation

B. double-declining-balance depreciation

C. accumulated depreciation

D. straight-line depreciation

Depreciation of a plant asset is the process of ________.

A. asset valuation for statement of financial position purposes

B. allocation of the asset’s cost to the periods of use

C. fund accumulation for the replacement of the asset

D. asset valuation based on current replacement cost data

If a company capitalizes costs that should be expensed, how is its income statement for the current period impacted?

A. Assets understated

B. Net Income understated

C. Expenses understated

D. Revenues understated

Ngo Company purchased a truck for $54,000. Sales tax amounted to$5,400; shipping costs amounted to $1,200; and one-year registration of the truck was$100. What is the total amount of costs that should be capitalized?

A. $60,600

B.$66,100

C. $54,000

D.$59,400

Which of the following statements about capitalizing costs is correct?

A. Capitalizing costs refers to the process of converting assets to expenses.

B. Only the purchase price of the asset is capitalized.

C. Capitalizing a cost means to record it as an asset.

D. Capitalizing costs results in an immediate decrease in net income.

Which of the following would not be considered an intangible asset?

A. goodwill

B. patent

C. copyright

D. inventory

Property, Plant, and Equipment is considered why type of asset?

A. current assets

B. contra assets

C. tangible assets

D. intangible assets

Kenzie purchased a new 3-D printer for $450,000. Although this printer is expected to last for ten years, Kenzie knows the technology will become old quickly and so she plans to replace this printer in three years. At that point, Kenzie believes she will be able to sell the printer for$30,000.

Consider how the purchase of the printer impacts not only depreciation expense each year but also the asset’s book value. What amount will be recorded as depreciation expense each year, and what will the book value be at the end of each year after depreciation is recorded?

Using the following information, calculate depreciation using the straight-line method.

Kenzie purchased a new 3-D printer for $450,000. Although this printer is expected to last for ten years, Kenzie knows the technology will become old quickly and so she plans to replace this printer in three years. At that point, Kenzie believes she will be able to sell the printer for$30,000.

Kenzie purchased a new 3-D printer for $450,000. Although this printer is expected to last for ten years, Kenzie knows the technology will become old quickly and so she plans to replace this printer in three years. At that point, Kenzie believes she will be able to sell the printer for$30,000. Calculate yearly depreciation using the double-declining-balance method.

Calico Inc. purchased a patent on a new drug it created. The patent cost $12,000. The patent has a life of twenty years, but Calico expects to be able to sell the drug for fifty years. Calculate the amortization expense and record the journal for the first year’s expense.

Steele Corp. purchases equipment for $30,000. Regarding the purchase, Steele

• paid shipping of$1,200,
• paid installation fees of $2,750,
• pays annual maintenance cost of$250, and
• received a 10% discount on sales price.

Determine the acquisition cost of the equipment.

Montello Inc. purchases a delivery truck for $25,000. The truck has a salvage value of$6,000 and is expected to be driven for 125,000 miles. Montello uses the units-of-production depreciation method, and in year one it expects to use the truck for 26,000 miles. Calculate the annual depreciation expense.