Practice Test Ch 10

Practice Test Ch 10 - Practice Test Chap 10 Acctg 220 1. A...

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Practice Test Chap 10 Acctg 220 1. A machine with a cost of $65,000 has an estimated residual value of $5,000 and an estimated life of 4 years or 18,000 hours. What is the amount of depreciation for the second full year, using the declining- balance method at double the straight-line rate? A $32,500 B $16,250 C $15,000 D $30,000 2. When the amount of use of a fixed asset varies from year to year, the method of determining depreciation expense that best matches allocation of cost with revenue is: A units-of-production B MACRS C straight-line D declining-balance 3. Equipment with a cost of $160,000 has an estimated residual value of $10,000 and an estimated life of 5 years or 12,000 hours. It is to be depreciated by the straight-line method. What is the amount of depreciation for the first full year, during which the equipment was used 3,300 hours? A $40,000 B $34,000 C $30,000 D $32,500 4. The depreciation method that does not use residual value in calculating the first year's depreciation expense is: A declining-balance B straight-line C units-of-production D none of the above 5. A fixed asset with a cost of $30,000 and accumulated depreciation of $27,500 is sold for $3,500. What is
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This note was uploaded on 02/14/2010 for the course ACCT 202 taught by Professor Horton,d during the Spring '09 term at Shoreline.

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Practice Test Ch 10 - Practice Test Chap 10 Acctg 220 1. A...

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