Compatibility Services Acquired an $80,000 Machine on January 1,20X3

question 56

Multiple Choice

Compatibility Services acquired an $80,000 machine on January 1,20X3.The machine is estimated to have a useful life of 8 years,and a residual value of $4,000.For units-of-production depreciation purposes,the machine is expected to produce 400,000 units.What is the depreciable value of the machine acquired by Compatibility Services?

• A)$4,000
• B)$76,000
• C)$80,000
• D)$8,000
• E)Cannot be determined without additional data

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Definitions:

Identifiability Criteria

The requirements for an asset to be considered identifiable, typically involving the asset being separable or arising from contractual or legal rights.

Intangible Asset

A non-physical asset that represents a legal right or intellectual property, such as trademarks, patents, and copyrights.

Newspaper Mastheads

The title block on the front page of a newspaper, including the publication's name and logo.

AASB 138

An Australian Accounting Standards Board standard that prescribes the accounting treatment for intangible assets not covered by other AASB standards.