In computing depreciation of an equipment, which of the following represents the first cost ?

A. The original purchase price and freight charges
B. Installation expenses
C. Initial taxes and permit fees
D. All of the above

The first cost to be incurred if the piece of equipment now in place had been bought for a second hand dealer or some other business is called ____________________?

A. Material cost
B. Fixed cost
C. First cost
D. In-place value

What refers to the value of an intangible item which arises from the exclusive right of a company to provide a specified product and service in a certain region of the country ?

A. Company value
B. Going value
C. Goodwill value
D. Franchise value

What refers to the value of an asset which a disinterested third party, different from the buyer and seller, will determine in order to establish a price acceptable to both parties ?

A. Book value
B. Market value
C. Fair value
D. Franchise value

Salvage value is sometimes known as _____________________?

A. Scrap value
B. Going value
C. Junk value
D. Second-hand value

The amount of property in which a willing buyer to a willing seller for the property when neither one is under the compulsion to buy nor to sell is called __________________?

A. Fair value
B. Market value
C. Good will value
D. Book value

A mathematical expression also known as the present value of annuity of one is called ____________________?

A. Load factor
B. Demand factor
C. Sinking fund factor
D. Present worth factor

What do you call the after-tax present worth of all depreciation effects over the depreciation period of the asset ?

A. Asset recovery
B. Depreciation recovery
C. Period recovery
D. After-tax recovery

Using factor method, the depletion at any given year is equal to ?

A. Initial cost of property times number of unit sold during the year divided by the total units in property
B. Initial cost of property divided by the number of units sold during the year
C. Initial cost of property times number of units sold during the year
D. Initial cost of property divided by the total units in property

What is another term for “unit method” for computing depletion ?

A. Initial cost method
B. Percentage method
C. Factor method
D. Sinking fund method