Accumulated depreciation is reported __________.
in the income statement as an expense
in the balance sheet as a contra asset
in the balance sheet as an asset
in the statement of cash flows as an outflow of cash from operating activities
Costs incurred in order to keep an asset in its normal operating condition are:
capitalized as assets
treated as a reduction in accumulated depreciation
expensed in the period incurred
depreciated over the asset's remaining life
Behrend Corp. purchases two patents in a basket purchase for a total cost of $9,000,000. The patents acquired and their estimated fair values are: Patent A = $2,000,000 and Patent B = $8,000,000. The cost of Patent A should be recognized at:
$1,800,000
$2,000,000
$1,000,000