Reference no: EM132812530

Questions -

Q1. On January 1, a machine with a useful life of five years and a salvage value of $30000 was purchased for $130000. What is the depreciation expense for year 2 under straight-line depreciation?

$78000.

$15600.

$20000.

$62400.

Q2. Ayayai Corp. bought equipment on January 1, 2022. The equipment cost $470000 and had an expected salvage value of $70000. The life of the equipment was estimated to be 6 years. The depreciable cost of the equipment is

$70000.

$470000.

$400000.

$66667.

Q3. Cullumber Company purchases land for $120000 cash. Cullumber assumes $5100 in property taxes due on the land. The title and attorney fees totaled $2300. Cullumber has the land graded for $3600. They paid $18000 for paving of a parking lot. What amount does Cullumber record as the cost for the land?

$131000.

$125900.

$120000.

$149000.

Q4. Equipment with a cost of $726200 has an estimated salvage value of $35000 and an estimated life of 4 years or 14400 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 3600 hours?

$181550.

$186550.

$190300.

$172800.

Q5. Ayayai Corp. purchased a delivery van with a $50000 list price. The company was given a $4000 cash discount by the dealer and paid $2500 sales tax. Annual insurance on the van is $1000. As a result of the purchase, by how much will Ayayai Corp. increase its van account?

$49000.

$48500.

$50000.

$46000.

Q6. On January 1, 2020, Ivanhoe Company, a calendar-year company, issued $1600000 of notes payable, of which $400000 is due on January 1 for each of the next four years. The proper balance sheet presentation on December 31, 2020, is:

Current liabilities, $1600000.

Long-term debt, $1600000.

Current liabilities, $400000; Long-term Debt, $1200000.

Current liabilities, $400000; Long-term Debt, $800000.