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In: Accounting

117.     Bates Company purchased equipment on January 1, 2008, at a total invoice cost of $600,000....

117.     Bates Company purchased equipment on January 1, 2008, at a total invoice cost of $600,000. The equipment has an estimated salvage value of $15,000 and an estimated useful life of 5 years. What is the amount of accumulated depreciation at December 31, 2009, if the straight-line method of depreciation is used?

a.   $120,000

b.   $240,000

c.   $117,000

d.   $234,000

118.     On January 1, a machine with a useful life of five years and a residual value of $15,000 was purchased for $45,000. What is the depreciation expense for year 2 under the double-declining-balance method of depreciation?

a.   $10,800

b.   $18,000

c.   $14,400

d.   $8,640

119.     A machine with a cost of $160,000 has an estimated salvage value of $10,000 and an estimated useful life of 5 years or 15,000 hours. It is to be depreciated using the units-of-activity method of depreciation. What is the amount of depreciation for the second full year, during which the machine was used 5,000 hours?

  1. $50,000
  2. $30,000
  3. $43,333
  4. $53,333

120.     Equipment with a cost of $240,000 has an estimated salvage value of $15,000 and an estimated life of 4 years or 15,000 hours. It is to be depreciated using the units-of-activity method. What is the amount of depreciation for the first full year, during which the equipment was used 3,300 hours?

a.   $60,000

b.   $67,800

c.   $49,500

d.   $56,250

121.     Larime Company purchased equipment for $40,000 on January 1, 2007, and will use the double-declining-balance method of depreciation. It is estimated that the equipment will have a 5-year life and a $2,000 salvage value at the end of its useful life. The amount of depreciation expense recognized in the year 2009 will be

a.   $5,760.

b.   $9,120.

c.   $9,600.

d.   $5,472.

122.     Interline Trucking purchased a tractor trailer for $98,000. Interline uses the units-of-activity method for depreciating its trucks and expects to drive the truck 1,000,000 miles over its 12-year useful life. Salvage value is estimated to be $14,000. If the truck is driven 90,000 miles in its first year, how much depreciation expense should Interline record?

a.   $7,000

b.   $8,820

c.   $7,560

d.   $8,167

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ekkarill92 answered 1 year ago
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