Preview

ACC 291 Week 2 Chapter 09 Practice Quiz 1

Satisfactory Essays
Open Document
Open Document
590 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
ACC 291 Week 2 Chapter 09 Practice Quiz 1
In this file ACC 291 Week 2 Chapter 09 Practice Quiz 1 you can find right answers on the following questions:

1. Erin Danielle Company purchased equipment and incurred the following costs.

2. Depreciation is a process of:

3. Micah Bartlett Company purchased equipment on January 1, 2010, at a total invoice cost of $400,000. The equipment has an estimated salvage value of $10,000 and an estimated useful life of 5 years. The amount of accumulated depreciation at December 31, 2011, if the straight-line method of depreciation is used, is:

4. Ann Torbert purchased a truck for $11,000 on January 1, 2010. The truck will have an estimated salvage value of $1,000 at the end of 5 years. Using the units-of-activity method, the balance in accumulated depreciation at December 31, 2011, can be computed by the following formula:

5. Jefferson Company purchased a piece of equipment on January 1, 2011. The equipment cost $60,000 and had an estimated life of 8 years and a salvage value of $8,000. What was the depreciation expense for the asset for 2012 under the double-declining-balance method?

6. When there is a change in estimated depreciation:

7. Able Towing Company purchased a tow truck for $60,000 on January 1, 2011. It was originally depreciated on a straight-line basis over 10 years with an assumed salvage value of $12,000. On December 31, 2013, before adjusting entries had been made, the company decided to change the remaining estimated life to 4 years (including 2013) and the salvage value to $2,000. What was the depreciation expense for 2013?

8. Additions to plant assets are:

9. Bennie Razor Company has decided to sell one of its old manufacturing machines on June 30, 2011. The machine was purchased for $80,000 on January 1, 2007, and was depreciated on a straight-line basis for 10 years assuming no ...

To download this tutorial follow the link - https://bitly.com/12B2M4s

Take advantage of

You May Also Find These Documents Helpful

  • Good Essays

    i. Prior to April1, 1989 – Depreciation was at 10% salvage value for 8 years…

    • 1382 Words
    • 6 Pages
    Good Essays
  • Satisfactory Essays

    Managerial Accounting

    • 628 Words
    • 3 Pages

    Shelling Company owns $30,000 of manufacturing equipment. The equipment has a 10-year useful life and a $6,000 salvage value. Shelling uses straight-line depreciation. During the most recent annual accounting period the…

    • 628 Words
    • 3 Pages
    Satisfactory Essays
  • Powerful Essays

    Salta Company installs a manufacturing machine in its factory at the beginning of the year at a cost of $87,000. The machine’s useful life is estimated to be 5 years, or 400,000 units of product, with a $7,000 salvage value. During its second year, the machine produces 84,500 units of product. Determine the machines’ second year depreciation under the units of production method:…

    • 2171 Words
    • 9 Pages
    Powerful Essays
  • Good Essays

    Accting 400 Final Exam

    • 1777 Words
    • 8 Pages

    Martin Textile purchased machinery for $50,000 eight years ago. It was expected to have a useful life of ten years, no salvage value, and was depreciated using the straight-line method. At the end of its eighth year of use it was retired from service and given to a junk dealer. The entry to record the retirement includes a…

    • 1777 Words
    • 8 Pages
    Good Essays
  • Good Essays

    Acc/291 Week 3

    • 626 Words
    • 3 Pages

    14.A truck costing $25,000 with a residual value of $5,000 was purchased by Rim Corporation. The truck’s estimated life is 10 years. At the end of Year 2, what is the book value using declining-balance method? Assume a depreciation rate of twice the straight-line method.…

    • 626 Words
    • 3 Pages
    Good Essays
  • Satisfactory Essays

    MID YEAR CHEAT SHEET

    • 863 Words
    • 6 Pages

    o If nothing is mentioned about the depreciation, assume it is the same amount from last…

    • 863 Words
    • 6 Pages
    Satisfactory Essays
  • Satisfactory Essays

    The Tax Benefits of the leasing would have a present value of $10,382.40 for the five years with a tax rate of 40%. When looking at purchasing the truck, using straight-line depreciation for both tax purposes and reports to share holders over the five years the present value would be $6,489.00. Using the double-declining balance method of depreciation for income tax purposes would yield a present value savings of $5,385.58 for the five years. Both depreciations for purchasing the truck are based on having a sale price of $1,800 at the end of five…

    • 336 Words
    • 2 Pages
    Satisfactory Essays
  • Satisfactory Essays

    Financial Accounting

    • 400 Words
    • 2 Pages

    Asset #5—Assembly Line—Henry purchased an assembly line on January 15, 2011 for $400,000. The line will be depreciated using the units of activity method of depreciation. The line has no salvage value and will be depreciated over twenty years or…

    • 400 Words
    • 2 Pages
    Satisfactory Essays
  • Satisfactory Essays

    Use sum of the years' digits method of depreciation to prepare a depreciation schedule of the following asset:…

    • 263 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    2. Inventory valuation methods: basic computations. The January beginning inventory of the White Company consisted of 300 units costing $40 each. During the first quarter, the company purchased two batches of goods: 700 Units at $44 on February 21 and 800 units at $50 on March 28. Sales during the first quarter were 1,400 units at $75 per unit. The White Company uses a periodic inventory system. Using the White Company data, fill in the following chart to compare the results obtained under the FIFO, LIFO, and weighted-average inventory methods.…

    • 1058 Words
    • 7 Pages
    Good Essays
  • Satisfactory Essays

    was bought in April 2010 and was sold during the year for $3,000. A new motor van…

    • 311 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    6. (TCOs A, E) Equipment was purchased for $75,000 on January 1, 2011. Freight charges of $3,200 were incurred and there was a cost of $6,000 for installation. It is estimated the equipment will have a $12,000 salvage value at the end of its 5-year useful life. Depreciation expense for 2011 using the straight-line method will be _____. (Points : 5)…

    • 2085 Words
    • 9 Pages
    Good Essays
  • Satisfactory Essays

    Week 1 Accounting

    • 406 Words
    • 3 Pages

    10. The company declared a stock split, and replaced each outstanding share with two new shares.…

    • 406 Words
    • 3 Pages
    Satisfactory Essays
  • Satisfactory Essays

    Sylvia

    • 9309 Words
    • 38 Pages

    CHAPTER 9 Plant Assets, Natural Resources, and Intangible Assets ASSIGNMENT CLASSIFICATION TABLE | | | | |Brief | | | |Learning | |Questions | |Exercises | |Do It! | |Objectives | | | | | | | | | | | | | | | |1A | |Determine acquisition costs of land and building. | |Simple | |20–30 | | | | | | | | | |2A | |Compute depreciation under different methods. | |Simple | |30–40 | | | | | | | | | |3A | |Compute depreciation under different methods. | |Moderate | |30–40 | | | | | | | | | |4A | |Calculate revisions to depreciation expense.…

    • 9309 Words
    • 38 Pages
    Satisfactory Essays
  • Good Essays

    alternate problems

    • 1365 Words
    • 6 Pages

    d. Prepare a journal entry at the end of the current year to record depreciation on the exercise equipment. Podunk College will depreciate this equipment by the straight-line method (half-year convention) over an estimated useful life of 4 years. Assume a zero residual value.…

    • 1365 Words
    • 6 Pages
    Good Essays