ACC/291T Principles Of Accounting Ii The Latest Version A+ Study Guide **********************************************
ACC 291T Entire Course Link http://www.onlinehelp123.com/acc-291 ********************************************** ACC 291T Wk 5 Apply: Connect Homework (2021.7 New) Mohr Company purchases a machine at the beginning of the year at a cost of $43,000. The machine is depreciated using the straight-line method. The machine’s useful life is estimated to be 5 years with a $7,000 salvage value. The book value of the machine at the end of year 2 is: Multiple Choice • $36,000. • $28,600. • $7,200. • $21,600. • $14,400.
A company had a tractor destroyed by fire. The tractor originally cost $143,000 with accumulated depreciation of $76,200. The proceeds from the insurance company were $38,000. The company should recognize: Multiple Choice • A loss of $66,800. • A loss of $28,800. • A gain of $28,800. •
A gain of $66,800. • A gain of $38,000.
Merchant Company purchased property for a building site. The costs associated with the property were:
Purchase price $ 189,000 Real estate commissions 16,400 Legal fees 2,200 Expenses of clearing the land 3,400 Expenses to remove old building 2,400 ________________________________________ What portion of these costs should be allocated to the cost of the land and what portion should be allocated to the cost of the new building? Multiple Choice • $207,600 to Land; $2,400 to Building. • $213,400 to Land; $0 to Building. • $191,200 to Land; $24,400 to Building. • $211,000 to Land; $0 to Building.
Martin Company purchases a machine at the beginning of the year at a cost of $70,000. The machine is depreciated using the double-declining-balance method. The machine’s useful life is estimated to be 4 years with a $5,800 salvage value. The machine’s book value at the end of year 3 is: Multiple Choice • $8,750. • $52,500. • $61,250. • $8,013. • $35,000.
An asset's book value is $32,400 on January 1, Year 6. The asset is being depreciated $450 per month using the straight-line method. Assuming the asset is sold on July 1, Year 7 for $23,800, the company should record: Multiple Choice • Neither a gain or loss is recognized on this type of transaction. • A gain on sale of $500. • A loss on sale of $500. • A loss on sale of $250. • A gain on sale of $250.
An asset's book value is $19,600 on December 31, Year 5. The asset has been depreciated at an annual rate of $4,600 on the straight-line method. Assuming the asset is sold on December 31, Year 5 for $16,600, the company should record: Multiple Choice • Neither a gain nor a loss is recognized on this type of transaction. • A loss on sale of $3,000. • A loss on sale of $3,900. • A gain on sale of $3,900. • A gain on sale of $3,000.
Gaston owns equipment that cost $17,000 with accumulated depreciation of $3,400. Gaston sells the equipment for $12,200. Which of the following would not be part of the journal entry to record the disposal of the equipment? Multiple Choice • Credit Gain on Disposal of Equipment $1,400. • Debit Cash $12,200. • Debit Accumulated Depreciation $3,400.
• Credit Equipment $17,000. • Debit Loss on Disposal of Equipment $1,400.
Marlow Company purchased a point of sale system on January 1 for $6,900. This system has a useful life of 10 years and a salvage value of $1,150. What would be the depreciation expense for the second year of its useful life using the double-declining-balance method? Multiple Choice • $1,104. • $575. • $1,040. • $1,150. • $1,380.
Wickland Company installs a manufacturing machine in its production facility at the beginning of the year at a cost of $101,000. The machine's useful life is estimated to be 10 years, or 340,000 units of product, with a $9,000 salvage value. During its second year, the machine produces 27,200 units of product. Determine the machines' second year depreciation under the straight-line method. Multiple Choice • $11,000. • $9,200. • $10,100. • $7,360. • $8,080.
Mohr Company purchases a machine at the beginning of the year at a cost of $44,000. The machine is depreciated using the double-declining-balance method. The machine’s useful life is estimated to be 8 years with a $3,000 salvage value. Depreciation expense in year 2 is: Multiple Choice
• $8,250. • $5,500. • $11,000. • $33,000. • $10,250.