Diamond Co. paid cash to overhaul a forklift, which extended the life of the forklift for an additional four years.

To calculate depletion expense, first determine the depletion per unit. Depletion per unit can be
calculated by taking (cost total units of capacity.

+ operating expenses
operating expenses
salvage value
+salvage value


Diamond Co. paid cash to overhaul a forklift, which extended the life of the forklift for an additional
four years. The entry to record this purchase would include a debit to the ___ account.

Repairs & Maintenance Expense
Equipment
Depreciation Expense - Equipment
Cash


If an intangible asset has a limited life, its cost is systematically allocated to expense over its useful
life through the process of:

amortization
depreciation
depletion
impairment


_____ are expenditures that extend the assets useful life beyond its original estimate.

Revenue expenditures

Extraordinary repairs

Betterments

Ordinary repairs

___ are expenditures that keep an asset in normal, good operating condition. They are necessary

if an asset is to perform to expectations over its useful life. 

Ordinary Repairs