Quiz2 - Question 1: Score 1/1 The depreciable base for an...

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Question 1: Score 1/1 The depreciable base for an asset is: Your Answer: Choice The amount allowable under MACRS Its service life. The difference between its replacement value and cost. The excess of its cost over residual value. Selected Question 2: Score 1/1 Gains on the cash sales of fixed assets: Your Answer: Choice Are reported on a net-of-tax basis if material. Are the excess of the cash proceeds over the book value of the assets. Selected Are part of cash flows from operations. Are the excess of the book value over the cash proceeds. Question 3: Score 1/1 Assuming an asset is used evenly over a four-year service life, which method of depreciation will always result in the largest amount of depreciation in the first year?
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Your Answer: Choice Selected Double-declining balance. Selected Units-of-production. Straight-line. Sum-of-the-year's digits. Question 4: Score 1/1 Cutter Enterprises purchased equipment for $72,000 on January 1, 2009. The equipment is expected to have a five-year life and a residual value of $6,000. Using the straight-line method, depreciation for 2009 would be: Your Answer: Choice Selected $13,200. Selected $14,400. $72,000. None of these is correct. Feedback: ($72,000 6,000) 5 = $13,200 Question 5: Score 1/1 Cutter Enterprises purchased equipment for $72,000 on January 1, 2009. The equipment is expected to have a five-year life and a residual value of $6,000. Using the double-declining balance method, depreciation for 2010 would be:
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Your Answer: Choice Selected $28,800. $18,240. $17,280. Selected None of these is correct. Feedback: Depreciation, 2010 = [72.0, 0.0] $ ($72,000 (details. ..) $40%) (details. ..) 40% = $17,280 Question 6: Score 1/1 Cutter Enterprises purchased equipment for $72,000 on January 1, 2009. The equipment is expected to have a five-year life and a residual value of $6,000. Using the sum-of-the-years'-digits method, depreciation for 2010 and book value at December 31, 2010 would be: Your Answer: Choice Selected $19,200 and $22,800. $17,600 and $32,400. Selected $17,600 and $26,400. $19,200 and $28,800. Feedback: Depreciation, 2010 = ($72,000 6,000) 4/15 = $17,600 Book value, 12/31/10 = $72,000 22,000 17,600 = $32,400 Question 7: Score 1/1
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On March 31, 2009, M. Belotti purchased the right to remove gravel from an old rock quarry. The gravel is to be sold as roadbed for highway construction. The cost of the quarry rights was $164,000, with estimated salable rock of
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Quiz2 - Question 1: Score 1/1 The depreciable base for an...

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