87. When the amount of use of a fixed asset varies from year to year, the method of determining depreciation expense that best matches allocation of cost with revenue is
A. declining-balance
B. straight-line
C. units-of-production
D. MACRS
88. A machine with a cost of $80,000 has an estimated residual value of $5,000 and an estimated life of 5 years or 15,000 hours. It is to be depreciated by the units-of-production method. What is the amount of depreciation for the second full year, during which the machine was used 5,000 hours?
A. $5,000
B. $25,000
C. $15,000
D. $26,667
89. Equipment with a cost of $130,000 has an estimated residual value of $10,000 and an estimated life of 5 years or 12,000 hours. It is to be depreciated by the straight-line method. What is the amount of depreciation for the first full year, during which the equipment was used 3,300 hours?
A. $24,000
B. $32,500
C. $33,000
D. $35,750
90. A machine with a cost of $75,000 has an estimated residual value of $5,000 and an estimated life of 4 years or 18,000 hours. What is the amount of depreciation for the second full year, using the double declining-balance method?
A. $17,500
B. $37,500
C. $18,750
D. $16,667
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
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.
Read moreEach paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.
Read moreThanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.
Read moreYour email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.
Read moreBy sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.
Read more