On july 1 2015 jackson company purchased equipment

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Question 2On July 1, 2015, Jackson Company purchased equipment for $400,000, and installation and testing costs totaled $40,000. The equipment has an estimated useful life of 10 years and an estimated salvage value of$40,000. If Jackson uses the double-declining-balance method, the depreciation expense for 2015 would be:Select one:a. $40,000. b. $72,000. c. $36,000. d. $88,000. e. $44,000. Correct. Double-declining balance rate = 2×( 100%/10 ) = 20%; Depreciation expense for 2015 = (20% × $440,000) × 6/12 = $44,000Feedback The correct answer is: $44,000.
Question 3Hatfield Company purchased a computer on January 1, 2013 for $10,000. The computer had an estimated salvage value of $3,000 and an estimated useful life of five years. At the beginning of 2015, the estimated salvage value changed to $1,000, and the computer is expected to have a remaining useful life of two years. Using the straight-line method, the depreciation expense for 2015 is:
Question 4To be classified as a plant asset, an asset must (mark all that apply). Each incorrect answer results in a negative point mark.Select one or more:
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Question 5Which answer is FALSE?In accounting for plant assets, accountants must:
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Question 6
The units-of-production depreciation formula is:Select one:a. (x)Deprecation per period = Asset cost + Estimated salvage value. b. (y)Estimated total units of production(service)during useful life of asset. c. (z)Depreciationperperiod= Depreciationperunit×Numberofunitsofgoodsorservicesproducedd. (x), (y), and (z). e. (x) and (z) only. FeedbackThe correct answer is: (z)Depreciation per period = Depreciation per unit × Number of units of goods or services produced.
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