10. Equipment with a cost of $160,000 has an estimated salvage valueof $15,000 a
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Question
10.
Equipment with a cost of $160,000 has an estimated salvage valueof $15,000 and an estimated life of 4 years or 12,000 hours. It isto be depreciated by the straight-line method. What is the amountof depreciation for the first full year, during which the equipmentwas used 3,300 hours?
A)
$40,000
B)
$43,750
C)
$41,250
D)
$36,250
11.
A company purchased factory equipment on April 1, 2005, for$48,000. It is estimated that the equipment will have a $3,000salvage value at the end of its 10-year useful life. Using thestraight-line method of depreciation, the amount to be recorded asdepreciation expense at December 31, 2005, is
A)
$4,500.00
B)
$4,800.00
C)
$3,375.00
D)
$3,750.00
12.
On July 1, 2004, Walters Kennels sells equipment for $24,000.The equipment originally cost $60,000, had an estimated 5-year lifeand an expected salvage value of $10,000. The AccumulatedDepreciation account had a balance of $35,000 on January 1, 2004,using the straight-line method. The gain or loss on disposal is
A)
$4,000 gain.
B)
$1,000 loss.
C)
$4,000 loss.
D)
$1,000 gain.
13.
On January 1, a machine with a useful life of five years and aresidual value of $3,000 was purchased for $15,000. What is thedepreciation expense for year 2 under the double-declining-balancemethod of depreciation.
A)
$3,600
B)
$6,000
C)
$4,800
D)
$2,880
10.
Equipment with a cost of $160,000 has an estimated salvage valueof $15,000 and an estimated life of 4 years or 12,000 hours. It isto be depreciated by the straight-line method. What is the amountof depreciation for the first full year, during which the equipmentwas used 3,300 hours?
A)
$40,000
B)
$43,750
C)
$41,250
D)
$36,250
Explanation / Answer
B)
$1,000 loss.
B)
$1,000 loss.
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