90.
Which of the following subsequent expenditures would not be capitalized?
91.
Which one of the following regarding the book value of an asset is correct?
92.
Which of the following is considered a “contra” account?
93.
The factors used to compute depreciation expense are an asset’s:
94.
The depreciable cost used in calculating depreciation expense is:
95.
Kansas Enterprises purchased equipment for $60,000 on January 1, 2018. The equipment
is expected to have a five-year life, with a residual value of $5,000 at the end of five years.
Using the straight-line method, depreciation expense for 2018 would be:
96.
Kansas Enterprises purchased equipment for $60,000 on January 1, 2018. The equipment
is expected to have a five-year life, with a residual value of $5,000 at the end of five years.
Using the straight-line method, the book value at December 31, 2018 would be:
97.
Kansas Enterprises purchased equipment for $60,000 on January 1, 2018. The equipment
is expected to have a five-year life, with a residual value of $5,000 at the end of five years.
Using the straight-line method, depreciation expense for 2019 and the book value at
December 31, 2019 would be:
98.
Kansas Enterprises purchased equipment for $60,000 on January 1, 2018. The equipment
is expected to have a five-year life, with a residual value of $5,000 at the end of five years.
Using the double-declining balance method, depreciation expense for 2018 would be:
99.
Kansas Enterprises purchased equipment for $60,000 on January 1, 2018. The equipment
is expected to have a five-year life, with a residual value of $5,000 at the end of five years.
Using the double-declining balance method, depreciation expense for 2019 would be:
100.
Kansas Enterprises purchased equipment for $60,000 on January 1, 2018. The equipment
is expected to have a five-year life, with a residual value of $5,000 at the end of five years.
Using the double-declining balance method, the book value at December 31, 2019 would
be:
101.
A machine has a cost of $15,000, an estimated residual value of $3,000, and an estimated
useful life of four years. The machine is being depreciated on a straight-line basis. At the
end of the second year, what amount will be reported for accumulated depreciation?
102.
A building was purchased for $50,000. The asset has an expected useful life of 6 years and
depreciation expense each year is $8,000 using the straight-line method. What is the
residual value of the building?
103.
Bricker Enterprises purchased a machine for $100,000 on October 1, 2018. The estimated
service life is ten years with a $10,000 residual value. Bricker records partial-year
depreciation based on the number of months in service. Depreciation expense for the year
ended December 31, 2018, using straight-line depreciation, is:
104.
Schager Company purchased a computer system at a cost of $40,000. The estimated
useful life is 10 years, and the estimated residual value is $5,000. Assuming the company
will use the double-declining-balance method, what is the depreciation expense for the
second year?
105.
Shasta Exploring purchases a piece of equipment for $50,000 and the equipment has an
expected useful life of five years. Its residual value is estimated to be $4,000. Assuming
Shasta uses the double-declining balance depreciation method, what is the depreciation
expense for the equipment for the second full year?
106.
During the first two years, Supplies, Inc. drove the company truck 15,000 and 22,000 miles,
respectively, to deliver merchandise to its customers. The company originally purchased
the truck for $175,000. If the truck has an estimated life of 10 years or 300,000 miles, with
an estimated residual value of $25,000, what amount of deprecation expense should
Supplies, Inc. record in the second year using the activity-based method?
107.
Crestview Estates purchased a tractor on January 1, 2018, for $65,000. The tractor’s useful
life is estimated to be 30,000 miles and has a residual value of $5,000. If Crestview used
the tractor 5,000 miles in 2018 and 3,000 miles in 2019, what is the balance for
accumulated depreciation
at the end of 2019 using the activity-based method?
108.
Nanki Corporation purchased equipment at the beginning of 2018 for $650,000. In 2018
and 2019, Nanki depreciated the asset on a straight–line basis with an estimated useful
life of 8 years and a $10,000 residual value. In 2020, due to changes in technology, Nanki
revised the useful life to a total of six years (four more years) with zero residual value.
What depreciation expense would Nanki record for the year 2020 on this equipment?
109.
Abbott Company purchased a computer that cost $10,000. It had an estimated useful life
of 5 years and no residual value. The computer was depreciated by the straight-line
method and was sold at the end of the fourth year of use for $3,000 cash. Abbott should
record:
110.
Costello Company purchased a computer that cost $10,000. It had an estimated useful life
of 5 years and no residual value. The computer was depreciated by the straight-line
method and was sold at the end of the second year of use for $5,000 cash. Costello should
record:
111.
On January 1, 2016, Jacob Inc. purchased a commercial truck for $48,000 and uses the
straight-line depreciation method. The truck has a useful life of eight years and an
estimated residual value of $8,000. On December 31, 2018, Jacob Inc. sold the truck for
$30,000. What amount of gain or loss should Jacob Inc. record on December 31, 2018?
112.
On January 1, 2016, Jacob Inc. purchased a commercial truck for $48,000 and uses the
straight-line depreciation method. The truck has a useful life of eight years and an
estimated residual value of $8,000. On December 31, 2017, Jacob Inc. sold the truck for
$43,000. What amount of gain or loss should Jacob Inc. record on December 31, 2017?
113.
On January 1, 2018, Jacob Inc. purchased a commercial truck for $48,000 and uses the
straight-line depreciation method. The truck has a useful life of eight years and an
estimated residual value of $8,000. Assume the truck was totaled in an accident on
December 31, 2019. What amount of gain or loss should Jacob Inc. record on December
31, 2019?
114.
On January 1, 2018, Jacob Inc. purchased a commercial truck for $48,000 and uses the
straight-line depreciation method. The truck has a useful life of eight years and an
estimated residual value of $8,000. On December 31, 2019, the truck was exchanged for a
new truck valued at $60,000. Jacob received a trade allowance of $35,000 on the exchange
with the remaining $25,000 paid in cash. What amount of gain or loss should Jacob Inc.
record on December 31, 2019?
115.
Alliance Products purchased equipment that cost $120,000. It had an estimated useful life
of four years and no residual value. The equipment was depreciated by the straight-line
method and was sold at the end of the third year of use for $25,000 cash. Alliance should
record:
116.
Alliance Products purchased equipment that cost $120,000. It had an estimated useful life
of four years and no residual value. The equipment was depreciated by the straight-line
method and was sold at the end of the second year of use for $65,000 cash. Alliance
should record:
117.
Career Services, Incorporated sold some office equipment for $52,000 on December 31,
2018. The journal entry to record the sale would include which of the following if the
original cost of the equipment was $80,000 with a residual value of $5,000 and a useful life
of 10 years? Assume the machine was purchased on January 1, 2015 and depreciated
using the straight-line method.