1.Which of the following should be included in the acquisitioncost of a piece of equipment?

A. transportation costs

B. testing costs prior to placing the equipmentinto production

C. installation costs

D. All of these choices are correct.

2.All of the following are needed for the calculation ofstraight-line depreciation except

A. residual value

B. units produced

C. estimated life

D. cost

3.Equipment with a cost of $220,000 has an estimated residualvalue of $30,000 and an estimated life of 10 years or 19,000 hours.It is to be depreciated by the straight-line method. What is theamount of depreciation for the first full year, during which theequipment was used 2,100 hours?

A. $21,000

B. $30,000

C. $22,000

D. $19,000

4.The Weber Company purchased a mining site for $1,750,000 onJuly 1. The company expects to mine ore for the next 10 years andanticipates that a total of 400,000 tons will be recovered. Theestimated residual value of the property is $150,000. During thefirst year, the company extracted 6,500 tons of ore. The depletionexpense is

A. $16,000

B. $15,000

C. $26,000

D. $17,500

5.If a fixed asset, such as a computer, were purchased onJanuary 1 for $3,750 with an estimated life of 3 years and asalvage or residual value of $150, the Year 1 journal entry forannual depreciation expense under the straight-line depreciationmethod is

A. DepreciationExpense 1,200

AccumulatedDepreciation 1,200

B. AccumulatedDepreciation 100

DepreciationExpense 100

C. Accumulated Depreciation