INTERMEDIATE ACCOUNTING CH. 11
EXAMS QUESTIONS WITH CORRECT
ANSWERS 2026 (A+)
Straight line yearly depreciation = -CORRECT ANSWERS- (Acquisition cost - residual value) / Total
estimated years
Double declining balance yearly depreciation = -CORRECT ANSWERS- Acquisition cost x (2/total
estimated years)
*Must stop at residual value manually
Sum of years digits = -CORRECT ANSWERS- [n x (n + 1)] / 2
SYD yearly depreciation = -CORRECT ANSWERS- (Acquisition cost - residual value) x (Remaining years /
SYD)
Units of production depreciation rate = -CORRECT ANSWERS- (Acquisition cost - residual value) / Total
estimated units
Units of production yearly depreciation = -CORRECT ANSWERS- Units produced that year x depreciation
rate
*Shows no depreciation expense if the asset is idle for the year
Changes in estimate -CORRECT ANSWERS- -Find BV of the asset as of the date of change in estimate
For depreciation:
-Use BV at date of change
-Use new estimated remaining useful life
, -New estimate of salvage value (if any)
Cost allocation processes -CORRECT ANSWERS- 1. Depreciation (tangible operational assets)
2. Depletion (natural resources)
3. Amortization (intangible assets)
Allocation factors: -CORRECT ANSWERS- 1. Allocation base
2. Estimated service life
3. Allocation method
Amortization for intangible assets with an indefinite life -CORRECT ANSWERS- No amortization
Amortization for intangible assets with a limited life -CORRECT ANSWERS- Amortized using straight line
depreciation
-No residual value
-Amortization period (#of years) is the shorter of...
-Useful life
-Legal life
Examples of intangibles with indefinite life -CORRECT ANSWERS- Goodwill, trademarks
Examples of intangibles with limited life -CORRECT ANSWERS- Patent, copyright
Journal entry to record amortization -CORRECT ANSWERS- Dr. Amortization expense
Cr. Intangible asset (net)
Changes in depreciation estimates are applied.... -CORRECT ANSWERS- Prospectively (now and forward)
EXAMS QUESTIONS WITH CORRECT
ANSWERS 2026 (A+)
Straight line yearly depreciation = -CORRECT ANSWERS- (Acquisition cost - residual value) / Total
estimated years
Double declining balance yearly depreciation = -CORRECT ANSWERS- Acquisition cost x (2/total
estimated years)
*Must stop at residual value manually
Sum of years digits = -CORRECT ANSWERS- [n x (n + 1)] / 2
SYD yearly depreciation = -CORRECT ANSWERS- (Acquisition cost - residual value) x (Remaining years /
SYD)
Units of production depreciation rate = -CORRECT ANSWERS- (Acquisition cost - residual value) / Total
estimated units
Units of production yearly depreciation = -CORRECT ANSWERS- Units produced that year x depreciation
rate
*Shows no depreciation expense if the asset is idle for the year
Changes in estimate -CORRECT ANSWERS- -Find BV of the asset as of the date of change in estimate
For depreciation:
-Use BV at date of change
-Use new estimated remaining useful life
, -New estimate of salvage value (if any)
Cost allocation processes -CORRECT ANSWERS- 1. Depreciation (tangible operational assets)
2. Depletion (natural resources)
3. Amortization (intangible assets)
Allocation factors: -CORRECT ANSWERS- 1. Allocation base
2. Estimated service life
3. Allocation method
Amortization for intangible assets with an indefinite life -CORRECT ANSWERS- No amortization
Amortization for intangible assets with a limited life -CORRECT ANSWERS- Amortized using straight line
depreciation
-No residual value
-Amortization period (#of years) is the shorter of...
-Useful life
-Legal life
Examples of intangibles with indefinite life -CORRECT ANSWERS- Goodwill, trademarks
Examples of intangibles with limited life -CORRECT ANSWERS- Patent, copyright
Journal entry to record amortization -CORRECT ANSWERS- Dr. Amortization expense
Cr. Intangible asset (net)
Changes in depreciation estimates are applied.... -CORRECT ANSWERS- Prospectively (now and forward)
