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97 the formula for depreciable cost is a initial cost residual value b initial cost 4298706

 

 

97. The formula for depreciable cost is 
A. initial cost + residual value
B. initial cost – residual value
C. initial cost – accumulated depreciation
D. depreciable cost = initial cost

 

98. Expected useful life is 
A. calculated when the asset is sold.
B. estimated at the time that the asset is placed in service.
C. determined each year that the depreciation calculation is made.
D. none of the answers are correct.

 

99. 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

 

100. 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

 

101. Computer equipment was acquired at the beginning of the year at a cost of $65,000 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. $26,000
B. $24,800
C. $12,400
D. $13,000

 

102. 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.

 

103. An asset was purchased for $120,000 on January 1, 2010 and originally estimated to have a useful life of 10 years with a residual value of $10,000.  At the beginning of 2012, it was determined that the remaining useful life of the asset was only 4 years with a residual value of $2,000.  Calculate the 2012 depreciation expense using the revised amounts and straight line method. 
A. $25,000
B. $11,000
C. $24,000
D. $24,500

 

104. A fixed asset with a cost of $52,000 and accumulated depreciation of $47,500 is traded for a similar asset priced at $60,000 in a transaction with commercial substance.   Assuming a trade-in allowance of $5,000, the cost basis of the new asset is  
A. $54,000
B. $59,500
C. $60,000
D. $60,500

 

105. A fixed asset with a cost of $41,000 and accumulated depreciation of $36,000 is traded for a similar asset priced at $50,000. Assuming a trade-in allowance of $4,000, the cost basis of the new asset is  
A. $54,000
B. $45,000
C. $51,000
D. $50,000

 

106. A fixed asset with a cost of $41,000 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. $3,000
B. $4,500
C. $  500
D. $1,500

 

 

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