Reference no: EM132581445

Question 1) Accumulated Depreciation

a. is used to show the amount of cost expiration of intangibles

b. is used to show the amount of cost expiration of natural resources

c. is the same as Depreciation Expense

d. is a contra asset account

Question 2) A new machine with a purchase price of $84,115, with transportation costs of $9,117, installation costs of $6,564, and special acquisition fees of $2,605, would have a cost basis of

a. $90,679

b. $84,115

c. $102,401

d. $93,284

Question 3) A fixed asset with a cost of $32,000 and accumulated depreciation of $28,800 is sold for $5,440. What is the amount of the gain or loss on disposal of the fixed asset?

a. $3,200 loss

b. $3,200 gain

c. $2,240 loss

d. $2,240 gain

Question 4) Computer equipment was acquired at the beginning of the year at a cost of $59,926 that has an estimated residual value of $2,904 and an estimated useful life of 3 years. Determine the second-year depreciation using the straight-line method.

a. $19,007.33

b. $19,975.33

c. $38,014.67

d. $20,943.33

Question 5) Weber Company purchased a mining site for $514,547 on July 1. The company expects to mine ore for the next 10 years and anticipates that a total of 91,709 tons will be recovered. The estimated residual value of the property is $53,054. During the first year, the company extracted 6,666 tons of ore. The depletion expense is

a. $33,544.28

b. $37,400.59

c. $46,149.30

d. $53,054.00

Question 6) Machinery was purchased on January 1 for $73,010.00. The machinery has an estimated life of seven years and an estimated salvage value of $9,000. Double-declining-balance depreciation for the second year would be (round calculations to the nearest dollar):

a. $14,900

b. $13,900

c. $15,900

d. $14,400

Question 7) A building with an appraisal value of $126,180 is made available at an offer price of $153,878. The purchaser acquires the property for $33,209 in cash, a 90-day note payable for $26,191, and a mortgage amounting to $50,183. The cost basis recorded in the buyer's accounting records to recognize this purchase is

a. $120,669

b. $126,180

c. $153,878

d. $109,583