multiple choice questions

ngstign 2 (16 marks): (CL02: 40%, CL03: 60%) 8. 10. 11. The depreciation allowance for year 11 of an asset with a 20-year useful life is SR 2,000. If the salvage value was estimated to be SR 2,000 and straight-line depreciation was used to calculate the depreciation allowance for year 11. What is the initial cost? (unit: SR) a) 42,000 b) 82,000 c) 32,000 (1) 62,000 A tractor for over-the-road hauling is purchased for SR 60,000. It is expected to be of use to the company for 9 years, after which it will be salvaged for SR 4,000. Using the double declining balance (DDB) method, determine the closest declining balance percentage. (unit: %) a) 14 b) 20 c) 22 d) 17 A surface mount placement machine is being purchased for SR 500,000; it has an estimated useful life of 10 years. The SLN method was used to estimate depreciation for the rst 5 years and the declining balance (DB) method for the rest of the useful life. What is the salvage value at the end of 10th year, if the SLN depreciation allowance equals to SR 20,000 and the declining balance percentage is 15%? (unit: SR) a) 155,29? b) 166,389 c) 144,204 d) 177,482 An energy generator has a unit cost of SR 40,000 and a shipping and installation costs of SR 3,000. After 5 years, the owner was able to sell it for SR 500. Calculate the SYD depreciation allowances at t = 2. (unit: SR) a) 9,733 b) 11,333 c) 7,200 d) 5,46