Multiple Choice Question 117

Cullumber Company bought a machine on January 1, 2017. The machine cost $142000 and had an expected salvage value of $29000. The life of the machine was estimated to be 5 years. The depreciation expense using the straight-line method of depreciation is

$37667.

$28400.

$22600.

none of these answer choices are correct.

Multiple Choice Question 60

Blossom Company acquires land for $87000 cash. Additional costs are as follows.

Removal of shed

$700

Filling and grading

1100

Salvage value of lumber of shed

120

Broker commission

1290

Paving of parking lot

12000

Closing costs

480

Blossom will record the acquisition cost of the land as

$90690.

$88770.

$87000.

$90450.

Multiple Choice Question 149

A truck costing $76000 and on which $65000 of accumulated depreciation has been recorded was discarded as having no value. Recording this event would include a(n)

loss of $11000.

increase to Accumulated Depreciation for $76000.

gain of $11000.

increase to Accumulated Depreciation for $65000.

Multiple Choice Question 94

Equipment with a cost of $357000 has an estimated salvage value of $17000 and an estimated life of 4 years or 10000 hours. It is to be depreciated by the straight-line method. What is the amount of depreciation for the first full year, during which the equipment was used 2000 hours?

$68000.

$85000.

$86750.

$89250.