Question :
6.2-31) On January 1, 2011, Ace Electronics paid $400,000 cash : 1253313
6.2-31) On January 1, 2011, Ace Electronics paid $400,000 cash for a computer that would be used to store and process its accounting information. The computer has a 5-year useful life, after which it will be worthless because it will be obsolete. Ace Electronics uses the straight-line method to depreciate its assets. The book value of the computer at December 31, 2013 is:
A) $400,000
B) $320,000
C) $240,000
D) $160,000
6.2-32) On January 1, 2011, Ace Electronics paid $400,000 cash for a computer that would be used to store and process its accounting information. The computer has a 5-year useful life, after which it will be worthless because it will be obsolete. How much depreciation expense should Ace Electronics record for the year ended December 31, 2011, using the double-declining balance method?
A) $200,000
B) $40,000
C) $80,000
D) $160,000
6.2-33) On January 1, 2011, Ace Electronics paid $400,000 cash for a computer that would be used to store and process its accounting information. The computer has a 5-year useful life, after which it will be worthless because it will be obsolete. How much depreciation expense should Ace Electronics record for the year ended December 31, 2012, using the double-declining balance method?
A) $160,000
B) $96,000
C) $100,000
D) $40,000
6.2-34) On January 1, 2011, Ace Electronics paid $400,000 cash for a computer that would be used to store and process its accounting information. The computer has a 5-year useful life, after which it will be worthless because it will be obsolete. How much depreciation expense should Ace Electronics record for the year ended December 31, 2013, using the double-declining balance method?
A) $57,600
B) $40,000
C) $80,000
D) $160,000
6.2-35) On January 1, 2011, Ace Electronics paid $400,000 cash for a computer that would be used to store and process its accounting information. The computer has a 5-year useful life, after which it will be worthless because it will be obsolete. Ace Electronics uses the double-declining balance method to depreciate its assets. The book value of the computer at December 31, 2011 is ________.
A) $160,000
B) $400,000
C) $240,000
D) $320,000
6.2-36) On January 1, 2011, Ace Electronics paid $400,000 cash for a computer that would be used to store and process its accounting information. The computer has a 5-year useful life, after which it will be worthless because it will be obsolete. Ace Electronics uses the double-declining balance method to depreciate its assets. The book value of the computer at December 31, 2012 is ________.
A) $96,000
B) $144,000
C) $80,000
D) $256,000
6.2-37) On January 1, 2011, Ace Electronics paid $400,000 cash for a computer that would be used to store and process its accounting information. The computer has a 5-year useful life, after which it will be worthless because it will be obsolete. Ace Electronics uses the double-declining balance method to depreciate its assets. The book value of the computer at December 31, 2013 is ________.
A) $0
B) $313,600
C) $86,400
D) $57,600
6.2-38) Capitalizing a cost means to record the cost as an asset.
6.2-39) In an accounting context, cost and expense mean the same thing.
6.2-40) Cost means the cash or cash equivalent amount sacrificed to acquire an asset.
6.2-41) The amount recorded as the cost of a long-term asset includes all costs reasonable and necessary for putting the asset in a working condition.
6.2-42) An accelerated depreciation method refers to any method of depreciating a long-term, asset that will result in greater amounts being expensed in the early years of an asset’s life and comparatively smaller amounts being expensed in the latter years of the asset’s life.
6.2-43) To “capitalize” means to record a cost as an asset.
6.2-44) All depreciation methods provide the same amount of depreciation expense each year.
6.2-45) The TOTAL amount of depreciation recorded over the life of a long-term asset depends on the method used to depreciate that asset.
