Reference no: EM132518145

Question 1: Al-Duhail company bought a car of 120,000 riyals, and it is expected to last for 10 years with total estimated miles of 500,000 over its life. The estimated residual value is 20,000 and the car has been driven for 150,000 miles during the first year and 100,000 miles during each of the second and third year. The car's depreciation expense per one mile is

A. 30,000

B. 0.24

C. 0.20

D. 20,000

Question 2: Al-Duhail company bought a car of 120,000 riyals, and it is expected to last for 10 years with total estimated miles of 500,000 over its life. The estimated residual value is 20,000 and the car has been driven for 150,000 miles during the first year and 100,000 miles during each of the second and third year. The car's net book value at the end of the second year is

A. 70,000

B. 50,000

C. 100,000

D. 20,000

Question 3: Al-Wakra Company bought a contractor of 65,000 riyals at the beginning of April (the fourth month) 2018, and it is expected that it will have a production life of up to 5 years and an expected value of 5,000 riyals at the end of that time. What's the depreciation expense of 2018 using starlight line method?

A. 9000

B. 3000

C. 12000

D. 8000

Question 4: Al-Duhail Co. bought a machine for £39,000, which is expected to have a useful life of four years and a residual value of £4,000 at the end of that time. If depreciation is to be provided on the straight-line basis, the accumulated depreciation after three years will be

A. 9,750

B. 26,250

C. 29,250

D. 8,750