Chapter 9 Smartbook Questions Accounting
The difference between the Equipment account and its Accumulated Depreciation is called the ____ value.
book; or carrying
Accountants say costs have been _____ when they are recorded as assets rather than as expenses
capitalized
Another term for residual value is____ value.
salvage
(Cost - _____value) x ( _____production this period/estimated total production) is the formula for calculating units-of-production depreciation. (Enter one word per blank.)
residual; actual
True or false: Land is not depreciated.
true
True or false: Long-lived assets (except land) are expensed over their useful lives.
true
X Circle Company purchased a computer system Black Box, Inc. with a list price of $100,000 plus 5% sales tax. The cost to deliver and install the computer was $10,000. The debit to Equipment equals_____
115,000
An asset's cost minus accumulated depreciation is its ______ value. Multiple choice question. A. book B. residual C. salvage D. market
A
IFRS ______. Multiple choice question. A. divides the cost of an asset among its significant component parts and depreciates the components separately over their useful lives B. allows only one method of depreciation C. has nothing to do with recording long-lived assets D. simplifies record-keeping by combining many assets into a single asset class and depreciating the asset class as if it were a single asset
A
Ice Queen bought a new refrigerated delivery truck. The engine has a useful life of 3 years, the refrigeration unit has a useful life of 2 years, and the body of the truck has a useful life of 10 years. Under IFRS, how many assets should Ice Queen record? Multiple choice question. A. Three B. Two C. One
A
On January 1, Ace Electronics bought a new cash register for $2,500. Ace plans to use the cash register for 4 years and then sell it for $200. If Ace uses straight-line depreciation, depreciation expense for the 1st year ended December 31 equals ______. Multiple choice question. A. $575 B. $1,925 C. $1,875 D. $2,300 E. $625
A
On January 1, Busy Beaver bought a new industrial lathe for $210,000. It expects to use the lathe for 10,000 hours over the next 5 years and then sell it for $10,000. Busy Beaver used the lathe for 2,000 hours in its 1st year and 2,500 hours in its 2nd year. Accumulated Depreciation at December 31 of the 2nd year, using units-of-production, equals ______. Multiple choice question. A. $90,000 B. $50,000 C. $40,000 D. $120,000 E. $80,000
A
Quiche & Tell, Inc. has discovered that its goodwill has been impaired because the secret recipe it received when it purchased its competitor is no longer a secret. Recording this impairment will ______. Multiple choice question. A. cause a decrease in stockholders' equity B. have no effect on the accounting equation C. cause a decrease in liabilities D. cause an increase in liabilities
A
Revenue expenditures are recorded with a debit to ______. Multiple choice question. A. an expense when they relate to ordinary repairs and maintenance B. an asset when they related to ordinary repairs C. an expense when they relate to extraordinary repairs D. a revenue account when they relate to extraordinary repairs E. a revenue account when they relate to ordinary repairs
A
The entry to record the purchase of $10,000 of equipment by signing an $8,000 note and paying the rest with cash is recorded with a ______. Multiple choice question. A. $10,000 debit to Equipment and $8,000 credit to Notes Payable and $2,000 credit to Cash B. $2,000 debit to Equipment and $2,000 credit to Cash C. $6,000 debit to Equipment and $2,000 debit to Cash and $8,000 credit to Notes Payable D. $8,000 debit to Notes Payable and $8,000 credit to Equipment
A
What effect does the residual value have on a long-lived asset's depreciable cost? Multiple choice question. A. The greater the residual value the smaller the depreciable cost. B. The residual value has no effect on depreciable cost. C. The smaller the residual value the smaller the depreciable cost.
A
Which method will report a lower net income in the first year of an asset's life? Multiple choice question. A. Declining-balance B. They will be the same C. Straight-line
A
Why should a company divide up the cost of a "basket purchase" among the different assets purchased? Multiple choice question. A. The different assets might be depreciated over different useful lives. B. Baskets are not long-lived assets. C. Some of the assets might be paid for more quickly than others. D. A company with a longer list of assets will appear to be stronger.
A
On January 11, Ace Electronics bought a new cash register for $2,500. In calculating depreciation expense for the year ended December 31, Ace's accountant will assume that the cash register was purchased on ______. Multiple choice question. A. January 1 B. January 11 C. February 1 D. January 31
A Accountants typically assume the assets were purchased at the beginning of the month nearest to the actual purchase which is January 1.
If management was to unethically capitalize costs that should not have been, which of the following would be misstated? (Select all that apply.) A. Stockholders' equity would be overstated. B. Assets would be understated. C. Liabilities would be understated. D. Stockholders' equity would be understated. E. Assets would be overstated. Liabilities would be overstated.
A and E
Which of these are long-lived productive assets? (Check all that apply.) A. Delivery equipment B. Cash C. Inventory D. Retained earnings E. Machinery
A and E
Computit bought a new copier machine. Which of these costs should be expensed? (Check all that apply.) Multiple select question. A. Replacement of the toner for the copy machine B. Annual maintenance cost C. Freight bill to deliver the machine D. Invoice price of the machine
AB
Amortization ______. (Check all that apply.) A. spreads the cost of intangible assets to expense over their useful lives B. is in accordance with the expense recognition (matching) principle C. is calculated using the straight-line method D. is used for expensing the cost of land over its useful life
ABC
Land improvements reported on a company's balance sheet might include ______. (Check all that apply.) A. the fence around a factory parking lot B. trees planted to provide shade for the customer parking lot C. sidewalks outside the corporate headquarters D. trees available for sale in a landscaping business E. a backhoe that a contractor uses to dig foundations
ABC
Which of the following may lead to a revision of an estimate of a company's depreciation expense? (Check all that apply.) Multiple select question. A. Extraordinary repairs that significantly extend the asset's usefulness B. A change in the estimated residual value C. A change in the estimated useful life D. A change in the estimated amount of property taxes
ABC
Morris Lest, Inc. sold its delivery truck for $4,000 cash. The truck's book value was $3,000. Which financial statements will be affected by this sale? (Check all that apply.) A. Income statement B. Statement of retained earnings C. Balance sheet D. Statement of financing activities E. Statement of cash flows
ABCE
Cedar Fair purchased land; which of the following should be debited to the Land account? (Check all that apply.) A. Commissions paid to brokers when purchasing the land B. Fees for surveying of the land C. Construction costs for the building on the land D. Legal fees for the land's title search
ABD
Shenandoah Skies built a new lodge for its ski resort. Which of the following costs should be capitalized? (Check all that apply.) Multiple select question. A. $7,000 in architect fees B. $4,200 paid in sales tax on the lumber to build the lodge C. $1,500 paid for a party to celebrate the grand opening D. $70,000 cost of lumber to build the lodge
ABD
Shenandoah Skies bought land to be used for a new ski resort. Which of the following of expenditures made by Shenandoah Skies should be capitalized? (Check all that apply.) A. $5,000 paid to Jack Mogul for a title search B. $50,000 paid to cut down timber to make way for ski runs C. $7,500 paid for a party to celebrate the grand opening D. $3,000 paid to advertise the new ski resort E. $6,000 for the 1st year's real estate taxes F. $5,000,000 to purchase the land
ABF
Which of these depreciation methods are allowed by GAAP? (Select all that apply.) Multiple select question. A. Reclining-balance B. Salvage value C. Straight-line D. Declining-balance E. Economic-benefits F. Units-of-production
CDF
An intangible asset may be recorded when a company ______. (Check all that apply.) Multiple select question. A. pays more than the net assets of the company purchased B. internally creates an asset with no physical properties, such as outstanding customer loyalty C. purchases a trademark D. trains its employees
AC
What is the effect of an impairment loss on the accounting equation? (Check all that apply.) Multiple select question. A. It decreases total assets. B. It increases total liabilities. C. It decreases total stockholders' equity. D. It increases total assets. E. It increases total stockholders' equity. F. It has no effect.
AC
Morris Lest, Inc. sold its delivery truck for $4,000 cash. The truck's book value was $3,000. Which financial statements will be affected by this sale? (Check all that apply.) Multiple select question. A. Balance sheet B. Statement of financing activities C. Statement of retained earnings D. Statement of cash flows E. Income statement
ACDE
Select all of the items below in determining the cost of purchased equipment. Multiple select question. A. Add the delivery costs B. Subtract the sales tax C. Subtract the purchase discount D. Add the installation costs E. Add the purchase discount F. Add the sales tax G. Add the list price
ACDFG
Dew Drop Inn sold 10 beds that had originally cost $500 each for a total of $800 cash. The depreciation recorded on the beds at the time of sale equals $4,000. The entry to record the sale includes a ______. (Check all that apply.) A. $5,000 credit to Furniture B. $200 credit to Gains on Disposal C. $800 debit to Cash D. $1,000 credit to Furniture E. $200 debit to Loss on Disposal F. $4,000 debit to Accumulated Depreciation
ACEF
An asset's residual value is ______. (Check all that apply.) Multiple select question. A. the same as its salvage value B. equal to its accumulated depreciation C. its cost plus any costs to install it and place it in service D. the estimated amount it can be sold for at the end of its useful life E. its cost minus its accumulated depreciation
AD
Which of the following result in an increase to intangible assets? (Check all that apply,) Multiple select question. A. $10,000 was spent to purchase a patent. B. A company increased the number of clients on its customer list. C. $10,000 was spent on research and development. D. A company purchased another company for $10,000 more than its net assets. E. A company purchased a franchise for $100,000.
ADE
Morris Lest, Inc. sold its truck and received less cash than the truck's book value. The net effect of this sale on the accounting equation is a(n) ______. (Check all that apply.) Multiple select question. A. decrease to assets B. increase to stockholders' equity C. decrease to liabilities D. increase to assets E. decrease to stockholders' equity
AE
Ace Electronics is disposing of a machine that it no longer needs. After Ace has made an entry to update depreciation expense, Ace should ______. Multiple choice question. A. do nothing else B. calculate and record any gain or loss on disposal C. calculate and record any loss on disposal, but ignore any gain D. calculate and record any gain on disposal, but ignore any loss
B
An asset's useful life ______. Multiple choice question. A. is the actual time the asset ends up being used B. may be expressed in terms of time or units of capacity C. is expressed in terms of time, not units of capacity
B
Construction in progress is reported as a(n) ______. Multiple choice question. A. expense on the income statement B. asset on the balance sheet C. retained earnings on the balance sheet D. liability on the balance sheet
B
Depreciation ______. Multiple choice question. A. captures sudden drops in asset values that arise due to impairments B. decreases an asset's book value which is not necessarily equal to its current market value C. results in assets being reported at their current market values D. measures an asset's impairment
B
Depreciation and impairment are different in that only ______. Multiple choice question. A. depreciation results in a decrease in net income B. impairment represents the decline in the current value of the related asset C. impairment result in a decrease to total assets
B
Mia Hero Shop sold its table with a book value of $1,000 for $800. Mia Hero will record ______. Multiple choice question. A. neither a loss nor a gain B. a loss on the sale C. a gain on the sale
B
Morris Lest, Inc. sold its delivery truck for $500 more than its book value. The sale will result in a(n) ______. Multiple choice question. A. decrease in Accounts Payable on the balance sheet B. increase in Net Income on the income statement C. increase in Cost of Goods Sold on the income statement D. decrease in Gross Profit on the income statement
B
On January 1, X-it Company bought a new delivery truck for $30,000. X-it plans to use the truck for 4 years, after which it will be sold for $6,000. Depreciation Expense for the 2nd year using double-declining-balance equals ______. Multiple choice question. A. $15,000 B. $7,500 C. $6,000 D. $4,500 E. $3,000
B
Ordinary repairs and maintenance costs should be ______. Multiple choice question. A. depreciated over the life of the related asset B. expensed as incurred C. capitalized D. added to the cost of the asset
B
Recording an asset impairment requires netting the ______. Multiple choice question. A. cost of the asset with its lower fair market value and increasing Accumulated Depreciation by that difference B. asset with its Accumulated Depreciation and then reducing the asset's carrying value to its lower fair market value C. cost of the asset with the lower fair market value D. lower fair market value with Accumulated Depreciation and then decreasing the asset by that difference
B
The straight-line depreciation method ______. Multiple choice question. A. reports more depreciation expense in a year when an asset is heavily used and less in a year when the asset is hardly used at all B. reports an equal amount of depreciation expense each year C. can be used only by small companies D. reports a higher amount of depreciation expense in the early years of an asset's use
B
The units-of-production depreciation method will result in ____ Depreciation Expense when the actual production is higher. Multiple choice question. A. the same B. higher C. smaller
B
When a company sells its delivery truck, it must ______. Multiple choice question. A. not record any depreciation expense in the year of the sale B. reduce both the truck account by the original cost and the related accumulated deprecation C. record a loss when the book value of the truck is less than the cash received D. reduce the truck account by the net book value of the asset
B
Which of the following statements is correct? Multiple choice question. A. Depreciation expense reflects the decrease in the current value of an asset over time. B. Depreciation is not intended to report an asset at its current value. C. An asset's book value is always less than its selling price. D. An asset's cost minus its accumulated depreciation is equal to its selling price.
B
Which of the following statements are true? (Check all that apply.) Multiple select question. A. Depreciation of a truck equals the decline in the current value of the truck. B. Impairment loss on an asset arises from a precipitous decline in the current value of the asset. C. Depreciation of a truck equals the decline in the estimated usefulness of the truck. D. The book value of an asset is the same as the current value of the asset.
BC
The entry to record annual straight-line depreciation will decrease a company's ______. Multiple select question. A. Total Expenses B. Total Assets C. asset book value D. Net Income E. Accumulated Depreciation F. Cash
BCD
X-it Company, signed a $500,000, 5-year note payable to buy a new industrial machine. The company paid $2,000 cash for transportation of the machine and $1,000 cash for installation costs. The journal entry to record this transaction will include a ______. (Check all that apply.) Multiple select question. A. $2,000 debit to Freight-in B. $500,000 credit to Note Payable C. $3,000 credit to Cash D. $503,000 debit to Machinery E. $500,000 debit to Machinery F. $1,000 debit to Installation Expe
BCD
Amortizing intangible assets affects the accounting equation by causing ______. (Check all that apply.) A. stockholders' equity to increase B. assets to decrease C. assets to increase D. stockholders' equity to decrease E. liabilities to increase F. liabilities to decrease
BD
Executives at WorldCom committed an $11 billion fraud by capitalizing costs that should have been expensed. What was the effect of this fraud on WorldCom's balance sheet? (Check all that apply.) A. Total assets were too low. B. Retained earnings were too high. C. Retained earnings were too low. D. Total assets were too high.
BD
X-it Company bought a new delivery truck. The manufacturer says that the truck should last for ten years and 120,000 miles. X-it plans to use the truck for 4 years, during which it will be driven 50,000 miles. What is the useful life of the truck for depreciation purposes? (Check all that apply.) A. 120,000 miles B. 50,000 miles C. 10 years D. 4 years
BD
A company bought land and a building for $128,000. The building has a useful life of 20 years. Why should the company split the $128,000 cost between the land and the building? A. The land will be depreciated over 40 years and the building will be depreciated over 20 years. B. The cost should not be split between the land and building. C. Land is not depreciated, while the building will be depreciated over its 20-year useful life. D. Both the land and the building will be depreciated over 2
C
Accumulated Depreciation is reported on the ______. Multiple choice question. A. balance sheet as an operating expense B. income statement as an operating expense C. balance sheet netted against the related long-lived asset D. income statement netted against the related long-lived asset
C
Which of the following financial statement totals are reduced by the adjusting entry to record amortization? (Check all that apply.) A. Total liabilities on the balance sheet B. Cash from operating activities on the statement of cash flows C. Net income on the income statement D. Total stockholders' equity on the balance sheet E. Total assets on the balance sheet
CDE
Ace Electronics bought a new cash register for $2,500. Ace originally planned to use the cash register for 4 years and then sell it for $200. After 4 years, Ace had recorded $2,300 of depreciation. If Ace continues to use the cash register, still planning to sell it eventually for $200, then Ace should record ______. A. $200 of additional depreciation B. the removal of the cash register from its books because it is fully depreciated C. no additional depreciation D. $575 of additional depreci
C
Acme, Inc.'s balance sheet shows Equipment at a cost of $5,000,000. Accumulated Depreciation is $2,000,000. Acme's income statement shows Depreciation Expense of $200,000 for the year. The equipment has $0 salvage value. Which of the following statements is true? A. 4% of the equipment's economic benefits have been used up so far. B. There must be a mistake because depreciation expense is less than accumulated depreciation. C. 40% of the equipment's economic benefits have been used up so far.
C
An intangible asset may be recorded only if ______. Multiple choice question. A. paid for in cash B. internally generated C. purchased D. it can later be sold
C
Dew Drop Inn had net revenue of $117,000 in 2020 and $100,000 in 2021. Its fixed assets were $400,000 at the end of 2019, $380,000 at the end of 2020, and $360,000 at the end of 2021. In which year was the fixed asset turnover ratio better? A. 2020, because the ratio was lower. B. 2021, because the ratio was higher. C. 2020, because the ratio was higher. D. 2021, because the ratio was lower.
C
How does management estimate useful lives and residual values? Multiple choice question. A. They use a dartboard. B. They do not make these estimates. C. They use professional judgment. D. They guess.
C
Loss on Impairment is a(n) ______. Multiple choice question. A. operating expense that appears on the balance sheet B. contra-revenue account C. operating expense that appears on the income statement D. reduction to depreciation expense for the year
C
Matching part of the cost of a long-lived asset with the revenues generated by the asset is ______. A. not required by IFRS B. not required by GAAP C. depreciation D. a basket purchase
C
Paving the parking lot and landscaping are recorded with a debit to ______. A. Land Improvements, an expense B. Construction in Progress, an asset C. Land Improvements, an asset D. Construction in Progress, an expense
C
Some fixed asset costs are expensed instead of being capitalized in the interest of efficiency, this is allowed when the costs are ______. Multiple choice question. A. going to increase an asset's usefulness through enhanced efficiency B. extraordinary in amount and would make assets appear larger than they should C. immaterial and would not affect users' analysis of financial statements D. for repairs and maintenance
C
The cost of a new building that is currently under construction, not for sale but for a company's own use, is reported on the balance sheet ______. A. as an asset, Work in Process B. after construction is complete. C. as an asset, Construction in Progress D. as a liability, until construction is complete
C
When does impairment occur? Multiple choice question. A. When the selling price of an asset is more than its book value B. When the selling price of an asset is less than its residual value C. When circumstances interfere with the ability to recover the value of the asset through future operations D. When the selling price of an asset is less than its accumulated depreciation
C
Why don't all companies use the same depreciation method? Multiple choice question. A. Only large companies are allowed to use some of the more complicated depreciation method. B. US income tax regulations require that a company use the same depreciation method for both financial reporting and income taxes. C. Different depreciation methods might better reflect the pattern in which assets' economic benefits are used. D. All companies do use the same depreciation method.
C
Why is the straight-line method of depreciation called "straight-line"? Multiple choice question. A. The rules are confining, like a strait (or straight) jacket. B. The straight-line method of depreciation has the easiest, most straight forward calculations. C. Depreciation expense is a constant amount each year, so a graph of depreciation expense over time is a straight line. D. The other methods calculate depreciation in a more roundabout fashion.
C
An asset's useful life ______. (Check all that apply.) Multiple select question. A. is the asset's economic life for all of its potential owners B. must be at least five years if the asset is to be depreciated C. is the asset's expected economic life to its owner D. can be expressed in either years or units
CD
Vango, Inc. bought a new delivery van during the year. Which of these costs should be expensed as ordinary repairs and maintenance? (Check all that apply.) Multiple select question. A. $40,000 cost of the van B. $2,000 paid to install shelves inside the van C. $900 for cleaning the van during the year D. $100 oil change on van
CD
What is the effect of recording depreciation expense on the accounting equation? (Check all that apply.) Multiple select question. A. Total liabilities decrease. B. Total liabilities increase. C. Total stockholders' equity decreases. D. Total assets decrease. E. Total stockholders' equity increases. F. Total assets increase.
CD
Which of the following costs associated with long-lived assets are expensed, not capitalized? (Check all that apply.) Multiple select question. A. Delivery costs B. Installation costs C. Immaterial repairs and maintenance D. Ordinary repairs and maintenance
CD
A company should depreciate a long-lived tangible asset to ______. Multiple choice question. A. report less income and pay less income tax B. record the decrease in the market value of the asset as it gets older C. decrease the total value of its assets, so that it can justify buying new ones D. match part of the cost of the asset with the revenues generated by the asset
D
Acme, Inc.'s balance sheet shows equipment at a cost of $5,000,000. Accumulated Depreciation is $2,000,000. Acme's income statement shows Depreciation Expense of $200,000 for the year. Which of the following statements is true? Multiple choice question. A. Next year's depreciation expense will be lower. B. Depreciation expense should be equal to accumulated depreciation. C. Next year's depreciation expense will be higher. D. 4% of the equipment's economic benefit was used up this year.
D
Amortization is an adjusting entry that records the amount of ______. Multiple choice question. A. the increase in value of tangible assets during the accounting period B. the increase in value of intangible assets during the accounting period C. tangible assets' remaining usefulness as of the end of the accounting period D. intangible assets' usefulness used during the accounting period
D
On January 1, X-it Company bought a new delivery truck for $30,000. X-it plans to use the truck for 4 years, after which it will be sold for $6,000. Depreciation Expense for the 1st year using double-declining-balance equals ______. Multiple choice question. A. $7,500 B. $6,000 C. $12,000 D. $15,000
D
Recording depreciation is an application of the ______. Multiple choice question. A. unit-of-measure assumption B. separate entity assumption C. cost principle D. expense recognition (matching) principle
D
Tangible assets are first recorded at ______. Multiple choice question. A. the amount of cash paid for them B. current market value or resale value C. cost minus residual (or salvage) value D. all costs to acquire them and prepare them for use
D
The Three Little Pigs purchased three houses for a total cost of $160,000. Appraisal values for the three completed houses were: straw house, $40,000; wood house $60,000; and brick house $100,000. Using the basket purchase allocation, the recorded value of the brick house should be ______. Multiple choice question. A. $66,667 B. $100,000 C. $53,333 D. $80,000
D
The effect of capitalizing a cost that should have been expensed causes ______. A. liabilities to be overstated on the balance sheet and expenses to be understated on the income statement B. liabilities to be understated on the balance sheet and expenses to be understated on the income statement C. assets to be understated on the balance sheet and expenses to be overstated on the income statement D. assets to be overstated on the balance sheet and expenses to be understated on the income sta
D
What effect will the units-of-production depreciation method have when the actual production is higher than in other periods? Multiple choice question. A. Accumulated Depreciation will be lower. B. Depreciation Expense will be lower. C. The book value will be higher. D. Depreciation Expense will be higher.
D
Long-lived assets are ______. (Check all that apply.) Multiple select question. A. intended for immediate resale B. assets that will be used or converted to cash within 1 year C. always tangible D. used by the business E. assets acquired for use over 1 or more years
D and E
Acme, Inc. bought land and a factory building for $80,000. The land was appraised at $25,000 and the building at $75,000. Using the basket purchase allocation, Acme would record the ______. Multiple choice question. A. land and building at $80,000 B. land at $5,000 and the building at $75,000 C. land and building at $100,000 D. land at $25,000 and the building at $55,000 E. land at $20,000 and the building at $60,000 F. land at $25,000 and the building at $75,000
E
On June 1, Ace Electronics bought a new cash register for $2,500. Ace plans to use the cash register for 4 years and then sell it for $100. If Ace uses straight-line depreciation, what is depreciation expense for the year ended December 31 that year? Multiple choice question. A. $625 B. $364.58 C. $300 D. $600 E. $350
E
On October 21, X-it Company bought a new delivery truck for $30,000. In calculating depreciation expense for the year ended December 31, X-it's accountant will assume that the truck was purchased on ______. Multiple choice question. A. October 1 B. December 1 C. January 1 of the following year D. January 1 E. November 1 F. October 21
E Accountants typically assume the assets were purchased at the beginning of the month nearest to the actual purchase which is November 1.
True or false: In accordance with US Generally Accepted Accounting Principles, a company will always capitalize the cost of a long-lived asset.
False; they won't if it's an immaterial amount
Similar to depreciation, ____is the expensing of intangible asset's usefulness used during the accounting period.
amortization
If a cost is capitalized, it is recorded as a(n) _____, not an expense
asset
When recording losses on the sale of fixed assets, the account, Loss on Disposal, is increased with a ____
debit
The adjusting entry to record depreciation debits ____ ____and credits _____ _____
depreciation expense; accumulated depreciation
A company may make an exception to the accounting rules and not capitalize a long-lived asset if its cost is____
immaterial
A higher residual value will result in a(n)_____ depreciation expense per year and a(n) _____net income.
lower; higher
Assuming straight-line depreciation is used, a higher estimated useful life will result in a(n) ______ depreciation expense per year and a(n)_____ net income. (Enter one word per blank.)
lower; higher
The estimated amount a long-lived asset is expected to be sold for at the end of its useful life is the ____ value.
residual
