Question : 25.              Sportech, Inc. acquired a piece of equipment January 3, : 1370095

25.              Sportech, Inc. acquired a piece of equipment on January 3, 2010. The total cost of the equipment was $77,500. Sportech estimated that the equipment would be used for 9 years before being sold for an estimated $5,500. Assuming the use of straight-line depreciation, the balance in the accumulated depreciation account on January 2, 2014 will be:

A)$32,000

B)$34,444

C)$36,889

D)$45,500

26.              Edcon Industries acquired a piece of equipment on January 3, 2010. The total cost of the equipment was $43,700. Edcon estimated that the equipment would be used for 7 years before being sold for an estimated $5,200. Assuming the use of straight-line depreciation, the carrying value of the equipment on January 2, 2015 will be:

A)$12,486

B)$16,200

C)$21,400

D)$27,500

27.              Windstreamers, Inc. acquired a piece of machinery on January 3, 2010. The total cost of the machinery was $68,400. Windstreamers estimated that the machinery would be used to produce 100,000 units of product before being sold for an estimated $11,600. Windstreamers uses the units-of-production method of depreciation. Assuming the machine produced 18,500 units during the year ended December 31, 2010, the 2008 depreciation expense was:

A)$18,500

B)$14,800

C)$12,654

D)$10,508

28.              Dynatech Corporation acquired a piece of machinery on January 3, 2010. The total cost of the machinery was $172,500. Dynatech estimated that the machinery would be used for 60,000 hours before being sold for an estimated $7,500. Dynatech uses the units-of-production method of depreciation. Assuming the machine was used for 18,750 hours during the year ended December 31, 2010, the depreciation expense rate per hour for 2010 was:

A)$9.20

B)$8.92

C)$2.88

D)$2.75

29.              Brookside Enterprises acquired a piece of machinery on January 3, 2010. The total cost of the machinery was $138,600. Brookside estimated that the machinery would be used for 77,000 hours before being sold for an estimated $3,850. Brookside uses the units-of-production method of depreciation. Assuming the machine was used for 15,800 hours during 2010, 18,300 hours during 2011, and 17,400 hours during 2012, the balance in the accumulated depreciation account on January 2, 2013 would be:

A)$45,900

B)$48,475

C)$90,125

D)$92,700

30.              Overhead Industries acquired a piece of machinery on January 3, 2010. The total cost of the machinery was $255,000. Overhead estimated that the machinery would be used for 68,000 hours before being sold for an estimated $10,200. Overhead uses the units-of-production method of depreciation. Assuming the machine was used for 12,700 hours during 2010, 14,100 hours during 2011, and 13,400 hours during 2012, the carrying value of the machinery on January 2, 2013 would be:

A)$104,250

B)$110,280

C)$144,720

D)$150,750

31.              Chippawa Industries acquired a delivery truck on January 4, 2010. The total cost of the truck was $145,000. Chippawa estimated that the truck would be used for 8 years before being sold for an estimated $23,500. Chippawa uses the double-declining balance method of depreciation. The total depreciation expense for the year ended December 31, 2010 was:

A)$36,250

B)$30,375

C)$18,125

D)$15,188

32.              Oxford Enterprises acquired a delivery truck on January 4, 2010. The total cost of the truck was $87,000. Oxford estimated that the truck would be used for 5 years before being sold for an estimated $16,500. Oxford uses the double-declining balance method of depreciation. The depreciation expense for the year ended December 31, 2012 was:

A)$34,800

B)$28,200

C)$12,528

D)$ 8,880

33.              Tucker Truck Company acquired a delivery truck on January 4, 2010. The total cost of the truck was $71,000. Tucker estimated that the truck would be used for 4 years before being sold for an estimated $7,500. Tucker uses the double-declining balance method of depreciation. The balance in the accumulated depreciation account on January 2, 2013 will be:

A)$63,500

B)$62,125

C)$55,563

D)$41,047

34.  Wilkens Corporation acquired a delivery truck on January 4, 2010. The total cost of the truck was $138,000. Wilkens estimated that the truck would be used for 10 years before being sold for an estimated $28,500. Wilkens uses the double-declining balance method of depreciation. The carrying value of the truck on January 2, 2014 will be:

A)$56,525

B)$45,271

C)$44,851

D)$35,921