151.IFRS allows companies to revalue plant assets to fair value. When an asset has increased in value, where is the account "Revaluation Surplus" reported?
a.On the income statement as part of income from continuing operations (other revenues and gains).
b.On the income statement as part of discontinued operations (discontinuing historical cost).
c.On the statement of financial position as part of accumulated comprehensive income (equity).
d.All of these answer choices are correct.
152.Able Towing Company purchased a tow truck for $150,000 on January 1, 2013. It was originally depreciated on a straight-line basis over 10 years with an assumed residual value of $30,000. On December 31, 2015, before adjusting entries had been made, the company decided to change the remaining estimated life to 4 years (including 2015) and the residual value to $5,000. What was the depreciation expense for 2015?
a.$15,000.
b.$12,000.
c.$37,500.
d.$30,250.
153.Nicholson Company purchased equipment on January 1, 2013, for €80,000 with an estimated residual value of €20,000 and estimated useful life of 8 years. On January 1, 2015, Nicholson decided the equipment will last 12 years from the date of purchase. The residual value is still estimated at €20,000. Using the straight-line method the new annual depreciation will be:
a.€4,500.
b.€5,000.
c.€6,000.
d.€6,667.
154.An asset was purchased for ¥450,000. It had an estimated residual value of ¥90,000 and an estimated useful life of 10 years. After 5 years of use, the estimated residual value is revised to ¥72,000 but the estimated useful life is unchanged. Assuming straight-line depreciation, depreciation expense in year 6 would be
a.¥54,000.
b.¥39,600.
c.¥27,000.
d.¥37,800.
155.Equipment costing $90,000 with a residual value of $18,000 and an estimated life of 8 years has been depreciated using the straight-line method for 2 years. Assuming a revised estimated total life of 5 years and no change in the residual value, the depreciation expense for year 3 would be
a.$10,800.
b.$24,000.
c.$18,000.
d.$14,400.
156.Ron's Quik Shop bought machinery for $75,000 on January 1, 2013. Ron estimated the useful life to be 5 years with no residual value, and the straight-line method of depreciation will be used. On January 1, 2014, Ron decides that the business will use the machinery for a total of 6 years. What is the revised depreciation expense for 2014?
a.$12,000
b.$6,000
c.$10,000
d$15,000
157.Each of the following is used in computing revised annual depreciation for a change in estimate
except
a.book value.
b.cost.
c.depreciable cost.
d.remaining useful life.
158.A change in the estimated useful life of equipment requires
a.a retroactive change in the amount of periodic depreciation recognized in previous years.
b.that no change be made in the periodic depreciation so that depreciation amounts are comparable over the life of the asset.
c.that the amount of periodic depreciation be changed in the current year and in future years.
d.that income for the current year be increased.
159.Enos Company has decided to change the estimate of the useful life of an asset that has been in service for 2 years. Which of the following statements describes the proper way to revise a useful life estimate?
a.Revisions in useful life are permitted if approved by the taxing authority.
b.Retroactive changes must be made to correct previously recorded depreciation.
c.Only future years will be affected by the revision.
d.Both current and future years will be affected by the revision.
160.Don's Copy Shop bought equipment for $120,000 on January 1, 2013. Don estimated the useful life to be 3 years with no residual value, and the straight-line method of depreciation will be used. On January 1, 2014, Don decides that the business will use the equipment for a total of 5 years. What is the revised depreciation expense for 2014?
a.$40,000
b.$16,000
c.$20,000
d.$30,000