Keva Co. trades in a vehicle with an original cost of $20,000 and accumulated depreciation of $18,000

Keva Co. trades in a vehicle with an original cost of $20,000 and accumulated depreciation of
$18,000. The list price of the new vehicle is $25,000. In addition to the old vehicle, Keva also
provides $24,000 cash. The ent/y to record this transaction would include debits to which of the
following accounts? (Check all that apply.)

Vehicles for $25,000
Accumulated Depreciation-Vehicles for $18,000
Loss on Exchange of Vehicles for $1,000
Book value fs $20,000-$1.8,000=$1!,000. Asset received = $25,000 
- assets gjven $2,000 book-value+ $24,000 = $2.6,000. Loss= $25 000 26 000 ~ $1,000.
Cash for $24,000
Gain on Exchange of Vehicles for $1,000


An oil company recognizes the cost of discovering and operating oil wells by recording __ _
expense for each unit of oil used.

operating
depletion
depreciation
amortization


Goodwill is the amount by which a company's value exceeds the value of its individual assets and
liabilities. It is recorded as an intangible asset, but is not amortized.


Which of the following items related to depreciating equipment would be found on a company's
income statement?

Depreciation Expense - Equipment
Accumulated Depreciation - Equipment
Equipment
Net Book Value