21. Explain how the gain or loss is computed on the sale of a piece of equipment.
22. What is the name of the tax rule that requires six months of depreciation expense to be taken in the year of purchase of the asset and the year of disposal regardless of the purchase date?
23. If a business chooses to use the straight-line method for tax purposes, how will this affect income taxin the first year of an asset's life, compared to MACRS?
24. Explain how a business using the straight-line method would re-compute depreciation after revising the useful life estimate.
25. What account is debited to record an expenditure that extends the life of a plant asset such as equipment?
26. What term is used for the process of expense allocation of natural resources?
27. Describe what is meant by the term "goodwill."
28. For what types of assets is the recognition of expense called "amortization?"
29. Explain the meaning of the terms "tangible" and "intangible" and discuss how these terms are used in describing assets.
30. Explain the meaning of "impairment" as used in accounting for goodwill.