50.1K

Verified Solution

Link Copied!

QUESTION 9

New man Hospital install a new parking lot. the paving cost $30,000 and the lights to illuminate the new parking area cost $12,000. Which of the following statements is true with respect to these additions?

	a.	$30,000 should be debited to the land account
	b.	$12,000 should be debited to Land improvements
	c.	$42,000 should be debited to the land account
	d.	$42,000 should be debited to land improvements

3 points

QUESTION 10

Which of the follwoing is included in the cost of constructing a building?

	a.	cost of paving a parking lot
	b.	cost of repairing vandalism damage during construction
	c.	interest incurred during construction
	d.	cost of removing the demolished building existing on the land when it was purchased

QUESTION 15

In computing depreciation, salvage value is

	a.	the fair market value of a plant asset on the date of acquisition
	b.	substracted from accumulated depreciation to determine the plant asset's depreciable cost
	c.	an estimate of a plant asset's value at the end of its useful life
	d.	ignored in all the depreciation methods

3 points

QUESTION 16

All the following are needed for the computation of depreciation except

	a.	disposal date
	b.	cost
	c.	salvage value
	d.	estimated useful life

3 points

QUESTION 17

Equipment with a cost of $160,000 has an estimated salvage value of $10,000 and an estimated life of 4 years or 12,000 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 3,300 hours?

	a.	$40,000
	b.	$42,500
	c.	$41,250
	d.	$37,500

3 points

QUESTION 18

On october 1, 2001, Mack company places a new asset into service. the cost of the asset is $8,000 with an estimated 5-year life and $2,000 salvage value at the end of its useful life. What is the depreciation expense for 2001 if MAck Company uses the straight-line method of depreciation?

	a.	$300
	b.	$1,600
	c.	$400
	d.	$800

3 points

QUESTION 19

On january 1, a machine with a useful life of five years and a residual value of $2,000 was purchased for $10,000. What is the depreciation expense for year 2 under straight-line depreciation?

	a.	$2,000
	b.	$6,000
	c.	$1,600
	d.	$4,800

Answer & Explanation Solved by verified expert

See Answer