Intro to Depreciation of Non-Current Assets

Which depreciation methods allocates an equal amount of depreciation to each year?

• Straight line method

• Units-of-production method

• Double-declining-balance method

• Sum of years method

When a manufacturer needs a machine with a larger capacity, the cause of depreciation of the old machine is

• Wear and tear

• Effluxion of time

• Inadequacy

• Obsolescence

A new machine at the price of RM45,000 and was given the trade discount of 10%. The transportation cost of RM1,000 and installation cost of RM1,500 were also paid. What is the cost of the machine?

• RM38,000

• RM40,500

• RM43,000

• RM52,200

The cost of an equipment is RM23,000 and is expected to have a residual value of RM3,000 after 10 years. Using the straight line method, what is the depreciation expenses each year?

• RM1,000

• RM1,500

• RM2,000

• RM2,300

A car at cost of RM20,000 and residual value of RM2,000 is expected to be used for five years. What is the accumulated depreciation after 2 years, if straight line method is used.

• RM3,600

• RM4,000

• RM7,200

• RM8,000

A machine was purchased at the cost of RM50,000 on 1 September 2019, residual value RM2,000 and was depreciated at 12% per annum using straight line method and monthly basis. What is the depreciation expenses for the year ended 31 December 2019?

• RM5,760

• RM6,000

• RM1,920

• RM1,440

A machine was purchased at the cost of RM50,000 on 1 September 2019, residual value RM2,000 and was depreciated at 12% per annum using monthly basis. What is the accumulated depreciation for the year ended 31 December 2020, if the company is straight line method.

• RM12,000

• RM11,520

• RM8,000

• RM7,680

A machine that was purchased at the cost of RM50,000 on 1 September 2019, has residual value of RM2,000 and was depreciated at 12% per annum using monthly basis. What is the depreciation expense for the year ended 31 March 2020.

• RM6,000

• RM5,760

• RM3,360

• RM2,880

Mia trading owns machinery that costs RM60,000. It is the policy of the business to charge depreciation over its useful life of 5 years. At the end of its useful life, it is estimated that its residual value is RM4,000. What is depreciation expense during the year.

• RM12,000

• RM12,800

• RM11,200

• RM800

A car was bought on 1 September 2019 at the cost of RM48,000. What is the depreciation for the year ended 30 June 2020 if the calculation is 20% on straight-line basis on yearly basis.

• RM9,600

• RM8,000

• RM7,200

• RM4,000