题目内容

On January 4, 2012, Mary's Cafe acquired equipment for $200,000. The estimated life of the equipment is 8 years or 60,000 hours. The estimated residual value is $10,000. What is the balance in the Accumulated Depreciation account at December 31, 2013 if the straight-line method is used?

A.$10,000
B.$25,000
C.$47,500
D.$50,000

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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

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

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