Question 1.1 equipment costing $40,000 with a salvage value of

Want answers to the assignment Below?

Text or Whatsapp Olivia at +1 (307) 209-4351


 

Place your order today at a 20% discount

Question 1.1  Equipment costing $40,000 with a salvage value of $8,000 and an estimated life of 8 years has been depreciated using the straight-line method for 2 years. Assuming a revised estimated total life of 5 years and no change in the salvage value, the depreciation expense for year 3 would be (Points : 2)      
 
       $4,800.
      $10,667.
      $8,000.
      $6,400.
 
Question 2. 2. Farr Company purchased a new van for floral deliveries on January 1, 2012. The van cost $48,000 with an estimated life of 5 years and $12,000 salvage value at the end of its useful life. The double-declining-balance method of depreciation will be used. What is the balance of the Accumulated Depreciation account at the end of 2013? (Points : 2)
      $7,680
      $23,040
      $30,720
      $11,520
 
Question 3. 3. Equipment was purchased for $150,000. Freight charges amounted to $7,000 and there was a cost of $20,000 for building a foundation and installing the equipment. It is estimated that the equipment will have a $30,000 salvage value at the end of its 5-year useful life. Depreciation expense each year using the straight-line method will be (Points : 2)
      $35,400.
      $29,400.
      $24,600.
      $24,000.
 
Question 4. 4. A company purchased office equipment for $40,000 and estimated a salvage value of $8,000 at the end of its 4-year useful life. The constant percentage to be applied against book value each year if the double-declining-balance method is used is (Points : 2)
      20%.
      25%.
      50%.
      5%.
 
Question 5. 5. Depreciation is the process of allocating the cost of a plant asset over its service life in (Points : 2)
      an equal and equitable manner.
      an accelerated and accurate manner.
      a systematic and rational manner.
      a conservative market-based manner.
 
Question 6. 6. If a plant asset is retired before it is fully depreciated, and no salvage or scrap value is received, (Points : 2)
      a gain on disposal will be recorded.
      phantom depreciation must be taken as though the asset were still on the books.
      a loss on disposal will be recorded.
      no gain or loss on disposal will be recorded.
 
Question 7. 7. On January 1, a machine with a useful life of five years and a residual value of $25,000 was purchased for $75,000. What is the depreciation expense for year 2 under the double-declining-balance method of depreciation? (Points : 2)
      $18,000
      $30,000
      $24,000
      $14,400
 
Question 8. 8. Mattox Company is building a new plant that will take three years to construct. The construction will be financed in part by funds borrowed during the construction period. There are significant architect fees, excavation fees, and building permit fees. Which of the following statements is true? (Points : 2)
      Excavation fees are capitalized but building permit fees are not.
      Architect fees are capitalized but building permit fees are not.
      Interest is capitalized during the construction as part of the cost of the building.
      The capitalized cost is equal to the contract price to build the plant less any interest on borrowed funds.
 
Question 9. 9. A plant asset was purchased on January 1 for $50,000 with an estimated salvage value of $10,000 at the end of its useful life. The current year’s Depreciation Expense is $5,000 calculated on the straight-line basis and the balance of the Accumulated Depreciation account at the end of the year is $25,000. The remaining useful life of the plant asset is (Points : 2)
      10 years.
      8 years.
      5 years.
      3 years.
 
Question 10. 10. On October 1, 2012, Holt Company places a new asset into service. The cost of the asset is $80,000 with an estimated 5-year life and $20,000 salvage value at the end of its useful life. What is the book value of the plant asset on the December 31, 2012, balance sheet assuming that Holt Company uses the double-declining-balance method of depreciation? (Points : 2)
      $52,000
      $60,000
      $72,000
      $76,000

Don't use plagiarized sources. Get Your Custom Essay on
Question 1.1 equipment costing $40,000 with a salvage value of
From Just $13/Page
Order Essay

ORDER ASSIGNMENT

About ASAP Essays

We are a professional paper writing website. If you have searched a question and bumped into our website just know you are in the right place to get help in your coursework. We offer HIGH QUALITY & PLAGIARISM FREE Papers.

How It Works

To make an Order you only need to click on “Order Now” and we will direct you to our Order Page. Fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.

Are there Discounts?

All new clients are eligible for 20% off in their first Order. Our payment method is safe and secure.

Hire a tutor today CLICK HERE to make your first order

CLICK HERE  To order your paper

About ASAP ESSAYS writing service

We are a professional paper writing website. If you have searched a question and bumped into our website just know you are in the right place to get help in your coursework. We offer HIGH QUALITY & PLAGIARISM FREE Papers.

How It Works

To make an Order you only need to click on “Order Now” and we will direct you to our Order Page. Fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.

Are there Discounts?

All new clients are eligible for upto 20% off in their first Order. Our payment method is safe and secure.

CLICK HERE  To order your paper

Order your Assignment today and save 15% with the discount code ESSAYHELP

X