Reference no: EM131792497

QUESTION 1 - On January 1, 2017, Anodel, Inc. acquired a machine for $1,080,000. The estimated useful life of the asset is five years. Residual value at the end of five years is estimated to be $56,000. Calculate the depreciation expense per year using the straight-line method.

$216,000

$204,800

$260,800

$270,000

QUESTION 2 - Radar, Inc. purchased a van on January 1, 2016, for $830,000. Estimated life of the van was five years, and its estimated residual value was $96,000. Radar uses the straight-line method of depreciation. At the beginning of 2018, the corporation revised the total estimated life of the asset from five years to six years. The estimated residual value remained the same as estimated earlier. Calculate the depreciation expense for 2018.

$146,800

$134,100

$110,100

$73,400

QUESTION 3 - Hastings Corporation has purchased a group of assets for $21,900. The assets and their relative market values are listed below.

Land $6,800

Equipment 2,500

Building 3,100

Which of the following amounts would be debited to the Land account? (Round any intermediate calculations to two decimal places, and your final answer to the nearest dollar.)

$4,133

$12,045

$4,380

$5,475

QUESTION 4 - The cost of an asset is $1,160,000, and its residual value is $160,000. Estimated useful life of the asset is four years. Calculate depreciation for the first year using the double-declining-balance method of depreciation. (Do not round any intermediate calculations, and round your final answer to the nearest dollar.)

$500,000

$580,000

$290,000

$250,000

QUESTION 5 - Hawkeye Corporation has acquired a property that included both land and a building for $560,000. The corporation hired an appraiser who has determined that the market value of the land is $370,000 and that of the building is $400,000. At what amount should the corporation record the cost of land? (Round any intermediate calculations to two decimal places, and your final answer to the nearest dollar.)

$408,800

$177,600

$280,000

$268,800

QUESTION 6 - A photocopier cost $95,000 when new and has accumulated depreciation of $90,000. If the business discards this plant asset, the result is __________.

a loss of $5,000

a loss of $11,250

a gain of $5,000

a gain of $11,250

QUESTION 7 - On June 30, 2016, Colora Printers purchased a printer for $59,000. It expects the printer to last for four years and have a residual value of $8,000. Compute the depreciation expense on the printer for the year ended December 31, 2016, using the straight-line method. (Round any intermediate calculations to two decimal places, and your final answer to the nearest dollar.)

$12,750

$6,375

$14,750

$7,438

QUESTION 8 - Acer, Inc. plans to develop a shopping center. In the first quarter, the following amounts were spent:

What amount should be recorded as the cost of the land in the corporation's books?

$25,300

$18,300

$20,060

$24,100

QUESTION 9 - On January 1, 2017, Zade Manufacturing Corporation purchased a machine for $40,900,000. Zade's management expects to use the machine for 27,000 hours over the next six years. The estimated residual value of the machine at the end of the sixth year is $47,000. The machine was used for 3,900 hours in 2017 and 5,400 hours in 2018. What is the depreciation expense for 2017 if the corporation uses the units-of-production method of depreciation? (Round any intermediate calculations to two decimal places, and your final answer to the nearest dollar.)

$5,900,973

$13,633,333

$8,170,578

$5,907,759