Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
UNIVERSIDAD DEL TURABO ESCUELA DE NEGOCIOS Y EMPRESARISMO GURABO, PUERTO RICO NOMBRE: FECHA: NÚM EST: PROF. J. PIÑEIRO NÚÑEZ – ACCO 302 EXAMEN II Multiples Choice (5 points each) 1. Pike Co. purchased a machine on July 1, 2010, for $400,000. The machine has an estimated useful life of five years and a salvage value of $80,000. The machine is being depreciated from the date of acquisition by the 150% declining- balance method. For the year ended December 31, 2010, Pike should record depreciation expense on this machine of a. $120,000. b. $80,000. c. $60,000. d. $48,000. 2. On April 1, 2009, Verlin Co. purchased new machinery for $240,000. The machinery has an estimated useful life of five years, and depreciation is computed by the sum-of-the-years'-digits method. The accumulated depreciation on this machinery at March 31, 2011, should be a. $160,000. b. $144,000. c. $96,000. d. $80,000. 3. Hahn Co. takes a full year's depreciation expense in the year of an asset's acquisition and no depreciation expense in the year of disposition. Data relating to one of Hahn's depreciable assets at December 31, 2011 are as follows: Acquisition year 2009 Cost $140,000 Residual value 20,000 Accumulated depreciation 96,000 Estimated useful life 5 years Using the same depreciation method as used in 2009, 2010, and 2011, how much depreciation expense should Hahn record in 2012 for this asset? a. $16,000 b. $24,000 c. $28,000 d. $32,000 Examen II 1 ACCO 302
Background image of page 1

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

View Full DocumentRight Arrow Icon
4. A depreciable asset has an estimated 15% salvage value. At the end of its estimated useful life, the accumulated depreciation would equal the original cost of the asset under which of the following depreciation methods? Straight-line Productive Output a. Yes No b. Yes Yes c. No Yes d. No No 5. Giger Company acquired a tract of land containing an extractable natural resource. Giger is required by the purchase contract to restore the land to a condition suitable for recreational use after it has extracted the natural resource. Geological surveys estimate that the recoverable reserves will be 5,000,000 tons, and that the land will have a value of $1,000,000 after restoration. Relevant cost information follows: Land $7,000,000 Estimated restoration costs 1,500,000 If Giger maintains no inventories of extracted material, what should be the charge
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

This document was uploaded on 03/02/2011.

Page1 / 5


This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online