Question : 91. The most widely used depreciation method A. straight-lineB. double-declining-balanceC. units-of-productionD. units-of-production or double-declining-balance 92. Eq : 1251995

91. The most widely used depreciation method is  
A. straight-line
B. double-declining-balance
C. units-of-production
D. units-of-production or double-declining-balance

92. 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 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  
A. $11,636
B. $16,000
C. $11,000
D. $8,000

93. The depreciation method that does not use residual value in calculating the first year’s depreciation expense is  
A. straight-line
B. units-of-production
C. double-declining-balance
D. none of the above

94. If a fixed asset, such as a computer, were purchased on January 1st for $3,750 with an estimated life of 3 years and a salvage or residual value of $150, the journal entry for monthly expense under straight-line depreciation is:
(Note: EOM indicates the last day of each month.) 
A. EOM Depreciation Expense                               100
                 Accumulated Depreciation                             100
B. EOM Depreciation Expense                             1,200
                 Accumulated Depreciation                            1,200
C. EOM Accumulated Depreciation                      1,200
                 Depreciation Expense                                   1,200
D. EOM Accumulated Depreciation                       100
                 Depreciation Expense                                     100

95. The proper journal entry to purchase a computer on account on January 2 to be utilized within the business would be: 
A. Jan 2   Office Supplies                                1,350
                  Accounts Payable                                      1,350
B. Jan 2   Office Equipment                             1,350
                  Accounts Payable                                      1,350
C. Jan 2   Office Supplies                                1,350
                  Accounts Receivable                                  1,350
D. Jan 2   Office Equipment                             1,350
                  Accounts Receivable                                  1,350

96. Residual value is also known as all of the following except 
A. scrap value
B. trade in value
C. salvage value
D. net book value

97. The formula for depreciable cost is 
A. initial cost + residual value
B. initial cost – residual value
C. initial cost – accumulated depreciation
D. depreciable cost = initial cost

98. Expected useful life is 
A. calculated when the asset is sold.
B. estimated at the time that the asset is placed in service.
C. determined each year that the depreciation calculation is made.
D. none of the answers are correct.

99. The calculation for annual depreciation using the straight-line depreciation method is 
A. initial cost / estimated useful life
B. depreciable cost / estimated useful life
C. depreciable cost * estimated useful life
D. initial cost * estimated useful life

100. The calculation for annual depreciation using the units-of-production method is 
A. (initial cost/estimated output) * the actual yearly output
B. (depreciable cost / yearly output) * estimated output
C. depreciable cost / yearly output
D. (depreciable cost / estimated output) * the actual yearly output