Question : 91. When the amount of use of a fixed asset varies : 1247232

91. 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

92. 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

93. 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

94. 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

95. The most widely used depreciation method is  
A. straight-line
B. sum-of-the-years-digits
C. declining-balance
D. units-of-production

96. 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

97. 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

98. 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

99. The proper journal entry to purchase a computer on account 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

100. 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