Question : 91. A leasehold: A. Is a short-term rental agreement. B. Is the same as a : 1256942

 

 

91. A leasehold: 

A. Is a short-term rental agreement.

B. Is the same as a patent.

C. Are the rights granted to the lessee by the lessor of a lease.

D. Is recorded as rent expense.

E. Is an investment asset.

 

 

92. A company’s old machine,which cost $40,000 and had accumulated depreciation of $30,000, was traded in on a new machine of like purpose having an estimated 20-year life with an invoice price of $50,000. The company also paid $43,000 cash, along with its old machine to acquire the new machine. The value of new machine should be recorded at: 

A. $40,000

B. $47,000

C. $50,000

D. $53,000

E. $10,000

 

 

93. Endor Fishing Company exchanged an old boat for a new one. The old boat had a cost of $260,000 and accumulated depreciation of $200,000. The new boat had an invoice price of $400,000. Endor received a trade in allowance of $100,000 on the old boat, which meant they paid $300,000 in addition to the old boat to acquire the new boat. What amount of gain or loss should be recorded on this exchange? (The exchange lacks commercial substance.)

A. $0 gain or loss

B. $40,000 gain

C. $40,000 loss

D. $60,000 loss

E. $100,000 loss

 

 

94. Huffington Company traded in an old delivery truck for a new one. The old truck had a cost of $75,000 and accumulated depreciation of $60,000. The new truck had an invoice price of $125,000. Huffington was given a $12,000 trade-in allowance on the old truck, which meant they paid $113,000 in addition to the old truck to acquire the new truck. What is the recorded value of the new truck? 

A. $15,000

B. $75,000

C. $113,000

D. $125,000

E. $128,000

 

 

95. A company bought a new display case for $42,000 and was given a trade-in of $2,000 on an old display case, so the company paid $40,000 cash with the trade-in. The old case had an original cost of $37,000 and accumulated depreciation of $34,000. The company should record the value of new display case at: 

A. $2,000

B. $3,000

C. $40,000

D. $42,000

E. $43,000

 

 

96. A company purchased a machine valued at $66,000. It traded in an old (similar) machine for a $9,000 trade-in allowance, meaning the company paid $57,000 cash with the trade-in. The old machine cost $44,000 and had accumulated depreciation of $36,000. What is the recorded value of the new machine? 

A. $8,000

B. $9,000

C. $57,000

D. $65,000

E. $66,000

 

 

 

97. A company purchased equipment valued at $200,000 on January 1. The equipment has an estimated useful life of six years or 5 million units. The equipment is estimated to have a salvage value of $13,400. Assuming the straight-line method of depreciation, what is the depreciation for the second year?

A $41,445.91

B. $62,137.80

C. $31,100.00

D. $55,980.00

E. $33,333.00

 

 

98. A company purchased equipment valued at $200,000 on January 1. The equipment has an estimated useful life of six years or 5million units. The equipment is estimated to have a salvage value of $13,400. Assuming the double declining balance method of depreciation, what is the depreciation for the second year?

A $41,445.91

B. $62,137.80

C. $31,100.00

D. $55,980.00

E. $44,442.22

 

 

99. A company purchased equipment valued at $200,000 on January 1. The equipment has an estimated useful life of six years or 5million units. The equipment is estimated to have a salvage value of $13,400. Assuming the units of production method of depreciation, what is the annual depreciation for the second year if 1.5 million units were produced?

A $41,445.91

B. $62,137.80

C. $31,100.00

D. $55,980.00

E. $33,333.00

 

 

100. A company purchased equipment valued at $200,000 on January 1. The equipment has an estimated useful life of six years or 5million units. The equipment is estimated to have a salvage value of $13,400. Assuming the straight-line method of depreciation, what is the book value at the end of the second year?

A $166,667.00

B. $88,977.80

C. $96,416.25

D. $168,900.00

E. $137,800.00