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Answer the following questions to see what you've learned.

1.

CRONUS purchases a new truck for LCY 125,000.00. They estimate that after the depreciable lifetime, which is five years, the truck will still have a value of around LCY 22,000.00. They want to consider this value by decreasing the periodic depreciations, starting from the first period. How can they achieve this objective?

In the purchase invoice that they use to post the acquisition cost, they should enter 22,000.00 in the Ending Value field.

When creating the fixed asset, they should enter 22,000.00 in the Ending Book Value field on the Posting FastTab.

When creating the fixed asset, they should enter 22,000.00 in the Ending Book Value field on the Lines FastTab.

In the purchase invoice that they use to post the acquisition cost, they should enter 22,000.00 in the Salvage Value field.

2.

You have an asset that you want to dispose of; however, because it is damaged, you can't sell it. How can you process the disposal?

Select the Inactive check box on the fixed asset card.

Post the disposal from a fixed asset G/L journal or a fixed asset journal.

Transfer the fixed asset to a location that is set up for obsolete assets.

Post a write-down of 100 percent to the asset.

You must answer all questions before checking your work.

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