Chapter 11 Quiz V2 with answers

# Chapter 11 Quiz V2 with answers - Name ACCT 304 Fall 2009...

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Name: ___________________________________________ ACCT 304 - Fall 2009 – Chapter 11 Quiz Instructions: Each question is worth 2 points. Please show all work. Please write your answer CLEARLY in the answer blank on the answer sheet. 1. Geiger Co. bought an asset that had a 4 year life for \$200,000. At the end of the 2nd year, Geiger Co. sold it for \$120,000. This resulted in a gain of \$10,000. If the company used straight-line depreciation, what was the accumulated depreciation for this asset? ANSWER: Sales Price - Book Value = Gain on Sale \$120,000 - Book Value = \$10,000 Book Value = \$110,000 Cost – Accumulated Depreciation = Book value \$200,000 - Accumulated Depreciation = \$110,000 Accumulated Depreciation = \$90,000 2. George Martin Corporation purchased a depreciable asset for \$300,000 on January 1, 2005. The estimated salvage value is \$30,000, and the estimated useful life is 9 years. The straight-line method is used for depreciation. In 2008, George Martin changed its estimates to a remaining

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## This note was uploaded on 11/30/2009 for the course ACCT 10022 taught by Professor Brink during the Fall '09 term at VCU.

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Chapter 11 Quiz V2 with answers - Name ACCT 304 Fall 2009...

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