Question : 87.A company purchased property for $100,000. The property included a : 1236323

 

87.A company purchased property for $100,000. The property included a building, a parking lot, and land. The building was appraised at $62,000; the land at $35,000, and the parking lot at $18,000. Land should be recorded in the accounting records with an allocated cost of:    

A.$0.

B.$30,435.

C.$35,000.

D.$46,087.

E.$100,000.

88.The formula to compute annual straight-line depreciation is:   

A.Depreciable cost divided by useful life in units.

B.(Cost plus salvage value) divided by the useful life in years.

C.(Cost minus salvage value) divided by the useful life in years.

D.Cost multiplied by useful life in years.

E.Cost divided by useful life in units.

89.The total cost of an asset less its accumulated depreciation is called:   

A.Historical cost.

B.Book value.

C.Present value.

D.Current (market) value.

E.Replacement cost.

90.The depreciation method that charges the same amount of expense to each period of the asset’s useful life is called:   

A.Accelerated depreciation.

B.Declining-balance depreciation.

C.Straight-line depreciation.

D.Units-of-production depreciation.

E.Modified accelerated cost recovery system (MACRS) depreciation.

91.The depreciation method that allocates an equal portion of the total depreciable cost for a plant asset to each unit produced is called:   

A.Accelerated depreciation.

B.Declining-balance depreciation.

C.Straight-line depreciation.

D.Units-of-production depreciation.

E.Modified accelerated cost recovery system (MACRS) depreciation.

92.The depreciation method in which a plant asset’s depreciation expense for a period is determined by applying a constant depreciation rate to the asset’s beginning-of-period book value is called:   

A.Book value depreciation.

B.Declining-balance depreciation.

C.Straight-line depreciation.

D.Units-of-production depreciation.

E.Modified accelerated cost recovery system (MACRS) depreciation.

93.The depreciation method that produces larger depreciation expense during the early years of an asset’s life and smaller expense in the later years is a(an):    

A.Accelerated depreciation method.

B.Book value depreciation method.

C.Straight-line depreciation method.

D.Units-of-production depreciation method.

E.Unrealized depreciation method.

94.A company purchased a delivery van for $28,000 with a salvage value of $3,000 on September 1, Year 1. It has an estimated useful life of 5 years. Using the straight-line method, how much depreciation expense should the company recognize on December 31, Year 1?   

A.$5,000.

B.$1,667.

C.$1,400.

D.$1,250.

E.$2,067.

95.Marlow Company purchased a point of sale system on January 1 for $3,400. This system has a useful life of 10 years and a salvage value of $400. What would be the depreciation expense for the second year of its useful life using the double-declining-balance method?   

A.$680.

B.$480.

C.$544.

D.$600.

E.$300.

96.Marlow Company purchased a point of sale system on January 1 for $3,400. This system has a useful life of 10 years and a salvage value of $400. What would be the depreciation expense for the first year of its useful life using the double-declining-balance method?   

A.$680.

B.$2,320.

C.$2,720.

D.$600.

E.$300.

 

 

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