References:

• text, chapter 12, pages 602 - 632
• Capital Assets (PPT)

Practice:

• Practice Test (Adobe Acrobat file)
• Practice Test Answer Key (Adobe Acrobat file)

  

  
  

  Requirements:

  In order to successfully complete the test on payroll, the student should be able to perform the following tasks:

• complete the transactions and adjustments associated with the purchase, amortization, and betterment of capital assets, including:
  • land, 
  • land improvements,
  • buildings, and
  • machinery and equipment.

• Complete the purchase transactions and/or adjustments associated with unique circumstances such as: 

  • subsequent betterments of existing capital assets,
  • low cost asset purchases, and
  • lump-sum asset purchases.

   

• Demonstrate the amortization of assets using three methods of amortization, including:

  • the straight-line method,
  • the units-of-production-method, and
  • the declining balance method.

• Amortize assets for a partial year using both the nearest whole-month method as well as the half-year rule.

• complete the various calculations and adjustments associated with the revision of amortization rates, 

• complete the various transactions associated with the disposal of assets, including:  
  • disposal at book value,
  • disposal at below book value, and
  • disposal at below book value.

   

• complete the various transactions associated with the purchase of, and amortization of, intangible assets such as:
  • patents,
  • copyrights, 
  • leaseholds,
  • leasehold improvements
  • goodwill, and
  • trademarks