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101 the calculation for annual depreciation using the straight line depreciation met 4296960

 

101. The calculation for annual depreciation using the straight-line depreciation method is 
A. initial cost / estimated useful life
B. depreciable cost / estimated useful life
C. depreciable cost * estimated useful life
D. initial cost * estimated useful life

102. The calculation for annual depreciation using the units-of-production method is 
A. (initial cost/estimated output) * the actual yearly output
B. (depreciable cost / yearly output) * estimated output
C. depreciable cost / yearly output
D. (depreciable cost / estimated output) * the actual yearly output

103. Computer equipment was acquired at the beginning of the year at a cost of $56,000 that has an estimated residual value of $3,000 and an estimated useful life of 5 years. Determine the 2nd year’s depreciation using straight-line depreciation. 
A. $11,200
B. $22,400
C. $10,600
D. $13,600

104. Which of the following is true? 
A. If using the double-declining-balance the total amount of depreciation expense during the life of the asset will be the highest.
B. If using the units-of-production method, it is possible to depreciate more than the depreciable cost.
C. If using the straight line method, the amount of depreciation expense during the first year is higher than that of the double-declining-balance.
D. Regardless of the depreciation method, the amount of total depreciation expense during the life of the asset will be the same.

105. An asset was purchased for $60,000 and originally estimated to have a useful life of 10 years with a residual value of $3,000. After two years of straight line depreciation, it was determined that the remaining useful life of the asset was only 2 years with a residual value of $2,000. Calculate this year’s depreciation using the revised amounts and straight line method. 
A. $22,800
B. $11,400
C. $23,300
D. $24,000

106. A fixed asset with a cost of $42,000 and accumulated depreciation of $38,500 is traded for a similar asset priced at $60,000. Assuming a trade-in allowance of $5,000, the cost basis of the new asset is 
A. $58,000
B. $58,500
C. $60,000
D. $61,500

107. A fixed asset with a cost of $40,000 and accumulated depreciation of $35,000 is traded for a similar asset priced at $50,000. Assuming a trade-in allowance of $3,000, the cost basis of the new asset is 
A. $55,000
B. $48,000
C. $52,000
D. $50,000

108. A fixed asset with a cost of $40,000 and accumulated depreciation of $36,500 is traded for a similar asset priced at $60,000. Assuming a trade-in allowance of $3,000, the recognized loss on the trade is 
A. $1,000
B. $3,500
C. $  500
D. $1,500

109. A fixed asset with a cost of $30,000 and accumulated depreciation of $27,500 is sold for $3,500. What is the amount of the gain or loss on disposal of the fixed asset? 
A. $2,500 loss
B. $1,000 loss
C. $2,500 gain
D. $1,000 gain

110. The Brock Company acquired new machinery with a price of $15,200 by trading in similar old machinery and paying $12,700. The old machinery originally cost $9,000 and had accumulated depreciation of $5,000. In recording this transaction, Brock Company should record 
A. the new machinery at $16,700
B. the new machinery at $12,700
C. a gain of $1,500
D. a loss of $1,500

 

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