C.9 Accounting Quiz

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?

Expenditures for research and development are generally recorded as?

The formula for depreciable cost is?

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)?

The proper journal entry to purchase a computer costing $975 on account to be utilized within the business would be?

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?

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?

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?

Expenditures that add to the utility of fixed assets for more than one accounting period are?

Which of the following are criteria for determining whether to record an asset as a fixed asset?

The accumulated depletion account is?

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?

Which of the following are criteria for determining whether to record an asset as a fixed asset?

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?

The term applied to the amount of cost to transfer to expense resulting from a decline in the utility of intangible assets is?

When a company discards machinery that is fully depreciated, this transaction would be recorded with the following entry?

On December 31, Strike Company has decided to trade-in one of its batting cages for another one that has a cost of $551,652.00. The seller of the batting cage is willing to allow a trade-in amount of $33,261.44. The initial cost of the old equipment was $246,381.00 with an accumulated depreciation of $209,423.85. Depreciation has been taken up to the end of the year. The difference will be paid in cash. What is the amount of the gain or loss in a transaction with commercial substance?

Expected useful life is?

On June 1, Michael Company purchased equipment at a cost of $120,000 that has a depreciable cost of $90,000 and an estimated useful life of 3 years or 30,000 hours. Using straight-line depreciation, calculate depreciation expense for the second year?