Chapter 11 Quiz V1 with answers

Chapter 11 Quiz V1 with answers - Name:

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Unformatted text preview: 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 $100,000. At the end of the 2nd year, Geiger Co. sold it for $60,000. This resulted in a gain of $5,000. If the company used straight-line depreciation, what was the accumulated depreciation for this asset? ANSWER: Sales Price - Book Value = Gain on Sale $60,000 - Book Value = $5,000 Book Value = $55,000 Cost – Accumulated Depreciation = Book value $100,000 - Accumulated Depreciation = $55,000 Accumulated Depreciation = $45,000 2. Lennon Company purchased a depreciable asset for $500,000. The estimated salvage value is $50,000, and the estimated useful life is 10,000 hours. Lennon used the asset for 1,500 hours in the current year. The activity method will be used for depreciation. What is the depreciation expense on this current year....
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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 V1 with answers - Name:

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