Chapter 7: Plant Assets & Intangibles

Question # 00076046 Posted By: solutionshere Updated on: 06/16/2015 04:22 AM Due on: 06/16/2015
Subject General Questions Topic General General Questions Tutorials:
Question
Dot Image

7.2-32 On January 2, 2010, KJ Corporation acquired equipment for $260,000. The estimated life of the equipment is 5 years or 40,000 hours. The estimated residual value is $20,000. What is the balance in Accumulated Depreciation on December 31, 2011, if KJ Corporation uses the straight-line method of depreciation?

A)

$96,000

B)

$49,500

C)

$51,500

D)

$53,625

7.2-33 On January 2, 2010, KJ Corporation acquired equipment for $260,000. The estimated life of the equipment is 5 years or 40,000 hours. The estimated residual value is $20,000. What is the book value of the asset on December 31, 2011, if KJ Corporation uses the straight-line method of depreciation?

A) $80,000

B) $96,000

C) $104,000

D) $164,000


Copyright 2010 Pearson Education Inc. Publishing as Prentice Hall. 28


7.2-34 On January 2, 2010, KJ Corporation acquired equipment for $260,000. The estimated life of the equipment is 5 years or 40,000 hours. The estimated residual value is $20,000. What is the balance in Accumulated Depreciation on December 31, 2010, if KJ Corporation uses the double-declining-balance method of depreciation?

A)

$62,400

B)

$88,000

C)

$96,000

D)

$104,000

Copyright 2010 Pearson Education Inc. Publishing as Prentice Hall. 29


7.2-35 On January 2, 2010, KJ Corporation acquired equipment for $260,000. The estimated life of the equipment is 5 years or 40,000 hours. The estimated residual value is $20,000. What is the balance in Accumulated Depreciation on December 31, 2011, if KJ Corporation uses the double-declining-balance method of depreciation?

A) $104,000

B) $38,400

C) $166,400

D) $104,000

7.2-36 On January 10, 2010, Maxim Corporation acquired equipment for $ 124,000. The estimated life of the equipment is 3 years or 24,000 hours. The estimated residual value is $10,000. What is the depreciation for 2010, if Baldwin Corporation uses the asset 9,100 hours and uses the units-of-production method of depreciation?

A) $43,225

B) $47,017

C) $41,333

D) $38,000


Copyright 2010 Pearson Education Inc. Publishing as Prentice Hall. 30


7.2-37 On January 10, 2010, Maxim Corporation acquired equipment for $124,000. The estimated life of the equipment is 3 years or 24,000 hours. The estimated residual value is $10,000. What is the balance of Accumulated Depreciation on December 31, 2011, if Baldwin Corporation uses the asset 5,500 hours in 2010 and 4,500 hours in 2011?

A) $76,000

B) $61,218

C) $52,083

D) $47,500

7.2-38 On January 2, 2011, Mosby Corporation acquired equipment for $ 200,000. The estimated life of the equipment is 8 years or 35,000 hours. The estimated residual value is $40,000. What is the book value of the equipment on December 31, 2011, if Mosby Corporation uses the double-declining-balance method of depreciation?

A)

$128,000

B)

$150,000

C)

$87,500

D)

$72,000


Copyright 2010 Pearson Education Inc. Publishing as Prentice Hall. 31


7.2-39 On January 2, 2011, Mosby Corporation acquired equipment for $ 200,000. The estimated life of the equipment is 8 years or 35,000 hours. The estimated residual value is $40,000. What is the amount of depreciation expense for 2011, if the company uses the double-declining-balance method of depreciation?

A) $112,500

B) $87,500

C) $50,000

D) $30,000

7.2-40 On January 2, 2011, Heidi’s Pet Boutique purchased a television for the dog sitting area which cost $8,000. It had an estimated useful life of 5 years and a residual value of $1,000. What is the amount of depreciation expense for 2012, the second year of the asset’s life using the double declining-balance method?

A)

$3,200

B)

$8,000

C)

$1,920

D)

$2,080


Copyright 2010 Pearson Education Inc. Publishing as Prentice Hall. 32



Dot Image
Tutorials for this Question
  1. Tutorial # 00070730 Posted By: solutionshere Posted on: 06/16/2015 04:24 AM
    Puchased By: 3
    Tutorial Preview
    be produced 124,000-10,000/24,000 hours= depreciation = 4.75 depreciation per hour Depreciation for 2010= ...
    Attachments
    chapter.docx (97.26 KB)
    Recent Feedback
    Rated By Feedback Comments Rated On
    N...ye Rating Provide re-checking service for customer satisfaction 12/27/2016

Great! We have found the solution of this question!

Whatsapp Lisa