Reference no: EM132585620

Question 1: Which of the following is true?

a. If using the units-of-activity method, it is possible to depreciate more than the depreciable cost.

b. If using the straight-line method, the amount of depreciation expense during the first year is higher than that of the double-declining-balance.

c. Regardless of the depreciation method, the amount of total depreciation expense during the life of the asset will be the same.

d. If using the double-declining-balance method, the total amount of depreciation expense during the life of the asset will be the highest.

Question 2: On December 31, Strike Company sold one of its batting cages for $254,660. The equipment had an original cost of $299,600 and has accumulated depreciation of $44,940. Depreciation has been recorded up to the end of the year. What is the amount of the gain or loss on this transaction?

a. no gain or loss

b. gain of $59,920

c. loss of $(44,940)

d. can't be determined with data provided

Question 3: Equipment with a cost of $168,632 has an estimated residual value of $8,264 and an estimated life of 7 years or 15,542 hours. It is to be depreciated by the straight-line method. What is the amount of depreciation for the first full year, during which the equipment was used for 3,513 hours?

a. $22,909.71

b. $36,248.41

c. $24,090.29

d. $36,294.06