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

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

Questions Cloud

What is the amount of annual depreciation tax shield for a : what is the amount of annual depreciation tax shield for a firm with 200000 in net income 75000 in depreciation

Compute the internal rate of return promised by the : chateau beaune is a family-owned winery located in the burgundy region of france which is headed by gerard despinoy.

How did japan overcome defeat and economic devastation : a world without borders1.ronald reagan2.mikhail s. gorbachev3.solidarity4.velvet

Required return for a preferred stock james river 338 : required return for a preferred stock james river 3.38 preferred is selling for 45.25. the preferred dividend is

When a company sells machinery at a price equal to its book : 1.all of the following below are needed for the calculation of straight-line depreciation excepta. units produced.b.

Waterco is a manufacturer of boat parts and has been in : waterco is a manufacturer of boat parts and has been in business only a few years. its board of directors decided to

Issue costs will be 11 of the market value the company pays : belton is issuing a 100 par vlue bond that pays 7 annal interest and matures in 15 years. investors are willing to pay

The company has an offer from duvall valves to produce the : howell corporation produces an executive jet for which it currently manufactures a fuel valve the cost of the valve is

The pervious retained earnings were 780 million how much : statement of retained earnings in its most recent financial statements newhouse inc. reported 50 million of net

User Account

All Pages