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Acct 410 PPE Exercise

Acct 410 PPE Exercise - Acct 410 PP&E Additional Exercise...

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Acct 410 PP&E Additional Exercise Q1)From an accounting perspective, which of the following statements regarding depreciation is true? a. Depreciation attempts to reflect the current value of an asset. b. Depreciation is a source of cash. c. Depreciation is the allocation of an asset's cost to the periods benefited. d. All of the above statements are true. e. None of the above statements are true. Q2)A machine costing $48,000 had an estimated useful life of 5 years and a salvage value of $3,000 when purchased on January 3, Year 1. Required: Supply the missing information in the table below: Depreciation Accumulated Book Expense for Depreciation Value Method Year 1 on 12/31/Yr 1 on 12/31/Yr 1 Straight-Line ____________ ____________ ____________ Double Declining Balance ____________ ____________ ____________ Depreciation Accumulated Book Expense for Depreciation Value Method Year 2 on 12/31/Yr 2 on 12/31/Yr 2 Straight-Line ____________ ____________ ____________ Double Declining Balance ____________ ____________ ____________ Q3) A depreciable plant asset was sold for $18,000 cash. As a result of the sale, a gain of $3,200 was recognized and recorded. The asset's accumulated depreciation on the day of the sale was $74,000.
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