# C.9 Accounting Quiz

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question
\$16,000.
Equipment with a cost of \$160,000, an estimated residual value of \$40,000, and an estimated life of 15 years was depreciated by the straight-line method for 4 years. Due to obsolescence, it was determined that the remaining useful life should be shortened by 3 years and the residual value changed to zero. The depreciation expense for the current and future years is?
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Current operating expenses.
Expenditures for research and development are generally recorded as?
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Initial cost - Residual value.
The formula for depreciable cost is?
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\$10,408.
Machinery was purchased on January 1 for \$51,000. The machinery has an estimated life of 7 years and an estimated salvage value of \$9,000. Double-declining-balance depreciation for the second year would be (round calculations to the nearest dollar)?
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Office Equipment 975 Accounts Payable 975
The proper journal entry to purchase a computer costing \$975 on account to be utilized within the business would be?
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Debit Cash and Accumulated Depreciation; credit Machinery.
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?
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Loss of \$16,357.38?
On December 31, Strike Company has decided to sell one of its batting cages. The initial cost of the equipment was \$251,652.00 with an accumulated depreciation of \$239,069.40. Depreciation has been taken up to the end of the year. The company found a company that is willing to buy the equipment for \$28,939.98. What is the amount of the gain or loss on this transaction?
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\$20,612.29?
A machine with a cost of \$77,452.00 has an estimated residual value of \$5,309.00 and an estimated life of 7 years or 16,462 hours. It is to be depreciated by the units-of-production method. What is the amount of depreciation for the second full year, during which the machine was used 3,543 hours?
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Capital expenditures.
Expenditures that add to the utility of fixed assets for more than one accounting period are?
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Must be long lived and used by the company in its normal operations.
Which of the following are criteria for determining whether to record an asset as a fixed asset?
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Reported on the balance sheet as a deduction from the cost of the mineral deposit.
The accumulated depletion account is?
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\$52,962.
A fixed asset with a cost of \$25,425 and accumulated depreciation of \$22,883 is traded for a similar asset priced at \$58,122 (fair market value) in a transaction with commercial substance. Assuming a trade-in allowance of \$5,160, the cost basis of the new asset is?
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Must be long lived and used by the company in its normal operations.
Which of the following are criteria for determining whether to record an asset as a fixed asset?
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\$11,382.20?
Computer equipment was acquired at the beginning of the year at a cost of \$56,911.00. The computer equipment has an estimated residual value of \$3,507.00 and an estimated useful life of 5 years. Determine the 2nd year's depreciation using straight-line depreciation?
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Amortization.
The term applied to the amount of cost to transfer to expense resulting from a decline in the utility of intangible assets is?
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Debit Accumulated Depreciation; credit Machinery.