When a company sells machinery at a price equal to its book

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Reference no: EM13567908

1.All of the following below are needed for the calculation of straight-line depreciation except:

a. Units produced.

b. Residual value.

c. Cost.

d. Estimated life.

2. A machine with a cost of $51,700.00 has an estimated residual value of $3,180.00 and an estimated life of 5 years or 15,888 hours. What is the amount of depreciation for the second full year, using the double declining-balance method?

a. $20,680.00

b. $19,408.00

c. $10,340.00

d. $12,408.00

3. Computer equipment was acquired at the beginning of the year at a cost of $65,677.00. The computer equipment has an estimated residual value of #3,877.00 and an estimated useful life of 3 years. Determine the 2nd year's depreciation using straight-line depreciation.

a. $41,200.00

b. $23,184.67

c. $20,600.00

d. $21,892.33

4. An asset was purchased for $120,000 on January 1, 2010 and originally estimated to have a useful life of 10 years with a residual value of $10,000. At the beginning of 2012, it was determined that the remaining useful life of the asset was only 4 years with a residual value of $2,000. Calculate the 2012 depreciation expense using the revised amounts and straight line method.

a. $25,000

b. $24,000

c. $11,000

d. $24,500

5. When a company sells machinery at a price equal to its book value, this transaction would be recorded with an entry that would include the following:

a. Debit Cash and Accumulated Depreciation; credit Machinery

b. Debit Machinery; credit Cash and Accumulated Depreciation

c. Debit Cash and Depreciated Expense; credit Accumulation Depreciation

d. Debit Cash and Machinery; credit Accumulation Depreciation

Reference no: EM13567908

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