Accounting

ate Chapteruiz MULTIPLE CHOICE Instructions: Circle the best answer for each of the following questions. 1. If unwanted buildings are located on land acquired for a plant site, the cost their removal, less any salvage recovered, should be charged to the: a. expense accounts b. building account c. land account oy 2. The depreciation method used most often in the financial statements is the: a. straight-line method b. double-declining-balance method c. units-of-production method d. MACRS method 3. The depreciation method that would provide the highest reported net income in the early years of an asset's life would be: a. straight-line b. double-declining-balance c. MACRS d. units of production 4. Equipment with an estimated useful life of 5 years and an estimated residual value of $1,000 is acquired at a cost of $15,000. Using the double- declining-balance method, what is the amount of depreciation for the first year of use of the equipment? a. $2,600 b. $3,000 c. $5,600 d. $6,000