题目内容

On January 2, 2015, Mumford Corporation acquired equipment for $80,000. The estimated life of the equipment is 4 years. The estimated residual value is $5,000. What is the amount of depreciation expense for 2016, if the company uses the double-declining-balance method of depreciation?

A.$18,750
B.$20,000
C.$37,500
D.$40,000

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Martin Company paid $500,000 for a piece of equipment. Martin uses straight-line depreciation. Currently the equipment has a balance in the accumulated depreciation account of $200,000. If the asset has no residual value and an estimated life of 10 years, how many years has the asset been depreciated?

A.1
B.2
C.4
D.6

Which of the following should be included in the cost of land improvements?

A.fencing
B.sprinkler system for bushes and lawn
C.lighted signs
D.all of the above

Land, a building and equipment are acquired for a lump sum of $1,000,000. The market values of the land, building and equipment are $300,000, $600,000 and $300,000, respectively. What is the cost assigned to the equipment?

A.$200,000
B.$250,000
C.$300,000
D.$333,333

Jimmy Company leased a delivery van for payments of $10,000 per year for three years. Jimmy Company also paid $1,200 for new larger windows in the van. Jimmy Company also spent $4,300 for special storage racks for the van. What do Leasehold Improvements equal?

A.$0.
B.$1,200.
C.$4,300.
D.$5,500.

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