Please circle the best answer on your exam AND
fill out the scantron sheet.
The accumulated depreciation account is credited when:
An asset is traded for a similar asset
A new asset is purchased
The depreciation expense for the year is recorded
An asset is traded for a different asset
Which of the following is not usually depreciated, depleted, or amortized?
On January 1, 2006 Della Enterprises purchased equipment at a cost of $6,300.
The equipment had an
estimated useful life of three years or 15,000 hours. The equipment will have a $600 salvage value at the
end of its life.
The depreciation expense for the year ending December 31, 2006, using the straight-line
method would be:
On January 1, 2005, Cyber Manufacturing purchased drilling equipment for $11,500.
The equipment has
an estimated useful life of four years and a salvage value of $200.
Given this information, if the company
uses the double-declining balance method of depreciation and sells the equipment on December 31, 2006,
for $3,000, it will have a(n):
The book value of an asset is the:
Original cost of the asset
Market value of the asset
Total of all expenses associated with the asset
Acquisition cost of the asset less any accumulated depreciation on the asset to date
What is the gain or loss on the sale of an asset that originally cost $6,000, has accumulated depreciation of
$2,500, and is sold for $3,000?