Reference no: EM13794345

1. A company had a bulldozer destroyed by fire. The bulldozer originally cost $128,000. The accumulated depreciation on it was $61,500. The proceeds from the insurance company were $91,500. The company should recognize:

A) A gain of $66,500.

B) A gain of $25,000.

C) A loss of $66,500.

D) A loss of $25,000.

E) A gain of $91,500.

2. A company's annual accounting period ends on September 30. During the current year, a depreciable asset that cost $15,500 was purchased on January 1. The asset has a $1,900 estimated salvage value. The company uses straight-line depreciation and expects the asset to have a three-year life. What is the total depreciation expense for the current year?

A) $4,533

B) $3,900

C) $1,133

D) $5,167

E) $3,400

3. A company sold equipment for $42,000. Total accumulated depreciation at the time of the sale was $16,000 and a loss of $6,000 was recognized on the sale. What was the original cost of the asset?

A) $58,000

B) $64,000

C) $26,000

D) $36,000

E) $48,000

4. A company purchased a mineral deposit for $840,000. It expects this property to produce 1,240,000 tons of ore and to have a salvage value of $54,000. In the current year, the company mined and sold 94,000 tons of ore. Its depletion expense for the current period is equal to:

A) $67,771

B) $59,584

C) $138,762

D) $1,462,222

E) $63,677

5. A company purchased a POS cash register on January 1 for $5,000. This register has a useful life of 10 years and a salvage value of $360. What would be the depreciation expense for thesecond-year of its useful life using the double-declining-balance method?

A) $800

B) $464

C) $928

D) $1,000

E) $720

6. Smitty Museum purchased the copyright to a piece of artwork for $882,000. Smitty plans to reproduce 1.8 million posters of the artwork over a period of 12 years. Calculate the amortization for the year assuming the Museum plans to reproduce and sell 122,000 posters the first year.

A) $73,500

B) $67,778

C) $0, copyrights are not amortized.

D) $75,500

E) $59,780

7. A company purchased property for $100,000. The property included a building, a parking lot and land. The building was appraised at $58,000; the land at $41,000 and the parking lot at $17,200. The value of the land that will be included in the accounting record is:

A) $0

B) $38,000

C) $35,284

D) $41,000

E) $100,000

8. Cardco Inc. has an annual accounting period that ends on December 31. During the current year a depreciable asset that cost $46,500 was purchased on September 2. The asset has a $4,900 estimated salvage value. The company uses straight-line depreciation and expects the asset to have a five-year life. What is the total depreciation expense for the current year?

A) $3,466.67

B) $2,773.33

C) $2,080.00

D) $8,320.00

E) $3,100.00