Reference no: EM132314975

Question

1. What is the depreciation in the ninth year for a peach grove that was purchased for $58,000 and placed in service as a ten-year property under the MACRS method of depreciation?

$2,947.50

$4,376.00

$1,612.80

$3,804.80

2. A piece of equipment is purchased for $18,000.00 and has a salvage value of $2,000.00. The estimated life is 10 years and the method of depreciation is straight-line. Shipping costs total $620.00 and installation costs are $590.00. The book value at the end of year 10 is?

$3,110.00.

$2,110.00.

$2,000.00.

$1,110.00.

3. A piece of equipment is purchased for $18,000.00 and has a salvage value of $2,000.00. The estimated life is 10 years and the method of depreciation is straight-line. Shipping costs total $620.00 and installation costs are $590.00. The total cost of the equipment is?

$18,000.00.

$21,210.00.

$2,000.00.

$19,210.00.

4. A truck has an estimated useful life of 150,000 miles. The original cost is $60,000.00 and the salvage value is $5,000.00. The miles driven were 18,000 for year 1 and 19,500 for year 2. The unit depreciation rate is?

$3.67.

$0.367.

$0.27.

$0.40.

5. Baker, Inc. uses the sum-of-the-years'-digits method to depreciate a $79,600.00 piece of equipment that has an estimated life of 20 years. The salvage value is $4,000.00. The book value at the end of year 2 is?

$14,822.70.

$4,000.00.

$65,560.00.

$7,960.00.

6. A truck cost $21,000.00 with an estimated salvage value of $1,000.00. It has an estimated useful life of 5 years. If the truck was purchased on January 5, what would be the book value of the truck at the end of year 1, using the straight-line method?

$17,000.00

$16,000.00

$4,000.00

$20,000.00

7. A piece of equipment is purchased for $18,000.00 and has a salvage value of $2,000.00. The estimated life is 10 years and the method of depreciation is straight-line. Shipping costs total $620.00 and installation costs are $590.00. The depreciation for year 2 is?

$1,721.00.

$200.00.

$1,800.00.

$1,921.00.

8. An asset costing $50,000.00 with a residual value of $5,000.00 has an estimated useful life of 5 years. Using the declining-balance method at twice the straight-line rate the depreciation for the second year is?

$12,000.00.

$20,000.00.

$18,000.00.

$10,800.00.

9. An office telephone system cost $32,000.00 with an estimated residual value of $2,000.00. The system has an estimated useful life of 5 years. Using the sum-of-the-years'-digits method, the amount of depreciation for the fourth year is?

$4,000.00.

$8,000.00.

$6,000.00.

$10,000.00