Reference no: EM132777842

Questions -

Q1. On January 1, a machine with a useful life of five years and a salvage value of $15000 was purchased for $155000. What is the depreciation expense for year 2 under straight-line depreciation?

A. $74400.

B. $28000.

C. $18600.

D. $93000.

Q2. Culver Corporation bought equipment on January 1, 2022. The equipment cost $310000 and had an expected salvage value of $65000. The life of the equipment was estimated to be 5 years. The depreciable cost of the equipment is

A. $49000.

B. $245000.

C. $310000.

D. $65000.

Q3. Crane Company purchases land for $200000 cash. Crane assumes $5900 in property taxes due on the land. The title and attorney fees totaled $2300. Crane has the land graded for $4000. They paid $20000 for paving of a parking lot. What amount does Crane record as the cost for the land?

A. $232200.

B. $206300.

C. $212200.

D. $200000.

Q4. Equipment with a cost of $562600 has an estimated salvage value of $25000 and an estimated life of 4 years or 12800 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 3200 hours?

A. $145650.

B. $134400.

C. $146900.

D. $140650.

Q5. Pronghorn Corp. purchased a delivery van with a $68000 list price. The company was given a $6200 cash discount by the dealer and paid $3300 sales tax. Annual insurance on the van is $1900. As a result of the purchase, by how much will Pronghorn Corp. increase its van account?

A. $66100.

B. $68000.

C. $61800.

D. $65100.