ch 6 illustrative MC - Quiz Questions for Chapter 6 1. A...

Quiz Questions for Chapter 6
1. A truck was purchased for $25,000. It has a six-year life and a $4,000 salvage value. Using straight-line
depreciation, what is the asset’s carrying value (book value) after 2 years?
a. $21,000.
b. $14,000.
c. $16,667.
d. $18,000.
2. The sale for $2,000 of equipment that cost $8,000 and has accumulated depreciation of $6,700 would result in
what reflected in the income statement? The following information pertains to the next two questions. Z Company purchased an asset for $24,000 on
January 1, 2010. The asset was expected to have a four-year life and a $4,000 salvage value.
3. The amount of depreciation expense for 2012 using double-declining-balance would be
4. Assume that Z Company uses straight-line depreciation. If, on January 1, 2013, Z Company sells the asset for
$10,000, the statement of cash flows would report a