Problem
Textbook: Accounting Principles Volume I (13th ed.), Weygandt, Kimmel, Kieso (John Wiley & Sons, 2019)
Chapter 10
Questions:
1. Sid Watney is uncertain about the applicability of the historical cost principle to plant assets. Explain the principle to Sid.
2. What are some examples of land improvements?
6. Contrast the straight-line method and the units-of-activity method as to (a) useful life, and (b) the pattern of periodic depreciation over useful life.
7. Contrast the effects of the three depreciation methods on annual depreciation expense.
8. In the fourth year of an asset's 5-year useful life, the company decides that the asset will have a 6-year service life. How should the revision of depreciation be recorded? Why?
15. Rowand Company hires an accounting intern who says that intangible assets should always be amortized over their legal lives. Is the intern correct? Explain.