ACC 206 Week 2 Quiz Chapter 10 -
Multiple Choice Questions 100
On October 1, 2014, Holt Company places a new asset into service. The cost of the asset is $120,000 with an estimated 5-year life and $30,000 salvage value at the end of its useful life. What is the book value of the plant asset on the December 31, 2014, balance sheet assuming that Holt Company uses the double-declining-balance method of depreciation?
Multiple Choice Question 117
Drago Company purchased equipment on January 1, 2014, at a total invoice cost of $1,200,000. The equipment has an estimated salvage value of $30,000 and an estimated useful life of 5 years. What is the amount of accumulated depreciation at December 31, 2015, if the straight-line method of depreciation is used?
Multiple Choice Question 161
Nicklaus Company has decided to sell one of its old machines on June 30, 2014. The machine was purchased for $200,000 on January 1, 2010, and was depreciated on a straight-line basis for 10 years with no salvage value. If the machine was sold for $65,000, what was the amount of the gain or loss recorded at the time of the sale?
Multiple Choice Question 156
Equipment that cost $420,000 and on which $200,000 of accumulated depreciation has been recorded was disposed of for $180,000 cash. The entry to record this event would include a
Multiple Choice Question 114
Sargent Corporation bought equipment on January 1, 2014. The equipment cost $360,000 and had an expected salvage value of $60,000. The life of the equipment was estimated to be 6 years. The depreciation expense using the straight-line method of depreciation is
Multiple Choice Question 164
Multiple Choice Question 139
The paneling of the body of an open pickup truck would be classified as a(n)
Multiple Choice Question 81
Depreciation is a process of
Multiple Choice Question 98
The depreciation method that applies a constant percentage to depreciable cost in calculating depreciation is
Multiple Choice Question 59
Which one of the following items is not considered a part of the cost of a truck purchased for business use?