Your boss purchased a computer for $2,800 that is expected to have a useful life time of 4 years and residual value at the end of fourth year of $360. If your company uses Double-Declining Balance method what will be your journal entry at the end of year one?

Select one:

a. debit Computer $2,800; credit Accumulated Depreciation $2,800

b. debit Accumulated Depreciation $700; credit Depreciation Expense $700

c. debit Depreciation Expense $1,400; credit Accumulated Depreciation $1,400

d. debit Depreciation Expense $610; credit Accumulated Depreciation $610

Assume on June 22 you invested $35,000 in cash and office equipment that had a value of $5,000.

What account will be credited on June 22?

Select one:

1. Capital $35,000

2. Equity $35,000

3. Investment $40,000

4. Capital $40,000

Clear my choice

On April 1, 2020 ABC purchased a truck for $350,000 with the expected useful life of 8 years or 300,000 km. Estimated residual value end of the useful life time is 45,000. During 2020, 89,000 km has been driven on this truck.

What is depreciation expense for 2020 if ABC uses Units-of-Production method?

Select one:

a. $90,833.33

b. $90,483.33

c. $103,833.00

d. $90,833.00

On December 5, Mike's Game Company purchased $2,620 worth of merchandise. On December 7, Mike's Game returned $85 worth of merchandise. On December 8, the company paid the balance in full, taking a 1% discount.

The amount of the payment was:

Select one:

a. $2,620.00

b. $2,535.00

c. $2,511.00

d. $2,509.65

SportsWorld purchased medical equipment for $190,000. The equipment has an estimated residual value of $10,000, with an estimated useful life of 5 years. The annual depreciation using declining-balance method will be $76,000 per year.

Select one:

True

False