Asadepreciableplantassetisusedinoperations:
A. accumulateddepreciationincreasesandthebookvalueoftheassetincreases.
B. accumulateddepreciationincreasesandthebookvalueoftheassetdecreases.
C. accumulateddepreciationremainsthesameandthebookvalueoftheassetdecreases.
D. accumulateddepreciationincreasesandthebookvalueoftheassetremainsthesame.
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Land,abuildingandequipmentareacquiredforalumpsumof$1,000,000.Themarketvaluesoftheland,buildingandequipmentare$300,000,$600,000and$300,000,respectively.Whatisthecostassignedtotheequipment?
A. $200,000
B. $250,000
C. $300,000
D. $333,333
Whichofthefollowingshouldbeincludedinthecostofland?
A. fencing
B. sprinklersystemforbushesandlawn
C. lightedsigns
D. Land’spurchaseprice
MartinCompanypaid$500,000forapieceofequipment.Martinusesstraight-linedepreciation.Currentlytheequipmenthasabalanceintheaccumulateddepreciationaccountof$200,000.Iftheassethasnoresidualvalueandanestimatedlifeof10years,howmanyyearshastheassetbeendepreciated?
A. 1
B. 2
C. 4
D. 6
OnJanuary2,2016,MumfordCorporationacquiredequipmentfor$80,000.Theestimatedlifeoftheequipmentis4years.Theestimatedresidualvalueis$5,000.Whatistheamountofdepreciationexpensefor2017,ifthecompanyusesthedouble-declining-balancemethodofdepreciation?
A. $18,750
B. $20,000
C. $37,500
D. $40,000