16. Each of the following is an example of an asset's involuntary conversion except A) a...

16. Each of the following is an example of an asset's involuntary conversion except

A) a condemnation of property.

B) a theft of the asset.

C) the sale of a fully depreciated asset.

D) a fire damaging an asset.

17. During self-construction of an asset by Samuelson Company, the following were among the costs incurred:

Fixed overhead for the year

Portion of $1,000,000 fixed overhead that be allocated to asset if it were normal

Variable overhead attributable to self con

What amount of overhead should be included in the cost of the self-constructed asset?

A) $90,000

B) $ -0-

C) $140,000

D) $50,000

18. The major difference between the service life of an asset and its physical life is that

A) service life refers to the length of time an asset is of use to its original owner, while physical life refers to how long the asset will be used by all owners.

B) physical life is always longer than service life.

C) service life refers to the time an asset will be used by a company and physical life refers to how long the asset will last.

D) physical life is the life of an asset without consideration of salvage value and service life requires the use of salvage value.

Solutions

Expert Solution

16.

Asset involuntary conversion is mandatory liquidation of asset due to fire, flooding, tornado, theft, condemnation, and when lost property is replaced by another asset or insurance proceeds.

Depreciation is not mandatory liquidation but a voluntary one.

Hence, correct option is C. the sale of a fully depreciated asset.

17.

Amount of overhead to be included in the cost of self-constructed asset = fixed overhead that would be allocated to asset + Variable overhead attributable to self-construction = 0.

figures for fixed overhead and variable overhead is missing in question. if not, correct option is $ 0.

18.

When assets are bought, they are assigned service life, the useful life where the asset is beneficial to the owner over the years. Physical life is something the user may extend over service life to get full use of asset more than intended in the beginning.

Hence, the correct option is C. service life refers to the time an asset will be used by a company and physical life refers to how long the asset will last.

ekkarill92 answered 9 months ago

Next > < Previous

Related Solutions

Each of the following is an example of an assets involuntary conversion except Group of answer...

Each of the following is an example of an assets involuntary conversion except Group of answer choices the sale of a fully depreciated asset. a fire damaging an asset. a theft of the asset. a condemnation of property

What are the major tax differences between a casualty involuntary conversion and a condemnation conversion?

Define, compare, and contrast the crimes of voluntary and involuntary manslaughter. Provide an example of each.

Give an example from the realistic life for each of the following conversion process: Anual to...

Give an example from the realistic life for each of the following conversion process: Anual to Further : Anual to Anual, Present to Anual

Explain the Sale of Personal Residence Gain Exclusion. What are the involuntary conversion rules?

.....Each of the following is an example of an inorganic compound, except bases. rocks. salts. acids....

.....Each of the following is an example of an inorganic compound, except bases. rocks. salts. acids. water. A.... Carbohydrates, lipids, and proteins are classified as organic molecules. bases. acids. salts. inorganic molecules. B .... Which of the following substances would be most acidic? white wine, pH = 3 tomato juice, pH = 4 urine, pH = 6 lemon juice, pH = 2 stomach secretions, pH = 1 C ... A(n) ________ removes hydrogen ions and a(n) ________ releases hydrogen ions....

Describe the GAAP rules for involuntary conversion of PPE to include how any gains or losses...

Describe the GAAP rules for involuntary conversion of PPE to include how any gains or losses are calculated.

For each of the following involuntary conversions, indicate whether the property acquired qualifies as replacement property,...

For each of the following involuntary conversions, indicate whether the property acquired qualifies as replacement property, the recognized gain, and the basis for the property acquired. If an amount is zero, enter "0". a. Frank owns a warehouse that is destroyed by a tornado. The space in the warehouse was rented to various tenants. The adjusted basis was $470,000. Frank uses all of the insurance proceeds of $700,000 to build a shopping mall in a neighboring community where no property...

All of the following is an example of random error except Group of answer choices Poor...

All of the following is an example of random error except Group of answer choices Poor thermal contact between thermometer and object being measured. Vibrations in air current when measuring mass Inconsistent environmental temparature Irregularities in the object being measured When all measurements of a quantity are consistently bigger or consistently smaller than the true value, these best indicates ________________________ Group of answer choices Systematic error in measurements Normal variation All of the above Random error in measurements A t...

Each of the following rollovers is considered an eligible rollover distribution EXCEPT:

Each of the following rollovers is considered an eligible rollover distribution EXCEPT: Levi has left his employer and has directed the trustee of the employer plan to directly transfer the balance of his account to his traditional IRA. Levi has no after-tax contributions to the plan Evangeline has two traditional IRAs that are not performing as well as her third traditional IRA. She has requested distributions from the first and second IRAs and plans to deposit the proceeds in the third IRA...

Subjects