ACCT
ACCTSol80.pdf

# ACCTSol80.pdf - 37 Award 1.00 point Helen's Corporation...

• Homework Help
• 2
• 100% (2) 2 out of 2 people found this document helpful

This preview shows pages 1–2. Sign up to view the full content.

37. Award: 1.00 point 38. Award: 1.00 point Helen's Corporation purchased factory equipment on July 1, 2015 for \$48,000. It is estimated that the equipment will have a \$6,000 residual value at the end of its 10-year useful life. The market value of the equipment is \$55,000. Using the straight-line method of depreciation, the amount to be recorded as depreciation expense at December 31, 2015 is: \$4,200 \$4,800 \$4,900 \$6,000 None of the other alternatives are correct (\$48,000 - \$6,000)/10 years = \$4,200/year for half the year = \$2,100. A company purchased a delivery truck for \$60,000 at the beginning of Year 1. At the time of purchase it is estimated that the truck will have a \$10,000 residual value at the end of its estimated 5-year useful life. In the middle of Year 3 the engine needed to be replaced at a cost of \$4,500. The estimated life of the asset is now 5 years with a residual value of \$4,500. What is the total Accumulated Depreciation at the end of Year 3 for this truck if straight line depreciation is used?

This preview has intentionally blurred sections. Sign up to view the full version.

This is the end of the preview. Sign up to access the rest of the document.
• One '14
• Depreciation, fair market value, Chicken Shop, Luna Springs Inc.

{[ snackBarMessage ]}

### What students are saying

• As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

Kiran Temple University Fox School of Business ‘17, Course Hero Intern

• I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

Dana University of Pennsylvania ‘17, Course Hero Intern

• The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

Jill Tulane University ‘16, Course Hero Intern