6.03 Depreciation Quiz

Kelly's Keying purchased a computer on January 1, 2020 for $3,700.00. The estimated salvage (disposal) value is $200.00 and the estimated useful life is 5 years. What is the annual depreciation expense?

• $200.00

• $340.00

• $700.00

• $740.00

Carl's Computing Services purchased a computer on July 1, 2020 for $3,500.00. The estimated salvage (disposal) value is $500.00 and the estimated useful life is 5 years. What is the depreciation expense for 2020?

• $250.00

• $300.00

• $500.00

• $600.00

Carol's Computer Services purchased a computer on January 1, 2019 for $3,700.00. The estimated salvage (disposal) value is $300.00 and the estimated useful life is 5 years. What is the accumulated depreciation at the end of 2021?

• $680.00

• $740.00

• $1,360.00

• 2,040.00

Examine the image. For year 3 what is the difference between the Accumulated deprecation?

• $900 is the difference between the two methods

• $1,440 is the book value at the end of the year using the double declining-balance method.

• $1,036.00 greater Accumulated Deprecation under the Straight-Line method

• $1,036.00 greater Accumulated Deprecation under the Double Declining-Balance Method

April 5, 2020 a computer is sold for $425.00: its original cost was, $1,800.00; accumulated depreciation through April 5, 2020, $1,500.00. To record the sale what journal entry is made?

• Debit Store Equipment $2,225.00; Credit Cash, $425.00 Credit Gain on Plant Assets $125.00, Credit Accum. Depr.-Store Equpment $1,675

• Debit Store Equipment, $1,800.00, Debit Gain on Plant Assets, $125; Credit Accum. Depr. - Store Equipment, $1,500.00, Credit Cash, $425.00

• Debit Gain on Plant Assets, $125.00, Debit Accum. Depr. - Store Equpment $1675.00; Credit Store Equipment, $2,225.00

• Debit Accum. Depr. - Store Equipment, 1,500.00, Debit Cash, $425.00; Credit Store Equipment, $1,800.00, Credit Gain on Plant Assets, $125.00

Examine the image. What is does the $60.00 represent?

• The balance of Accumulated Depr. - Store Equipment

• The yearly straight-line depreciation on store equipment.

• The partial year 's depreciation on store equipment.

• The salvage value of the store equipment.

Examine the image. How much is the estimated disposal value of this Display Case?

• $250.00

• $3,000.00

• $600.00

• $850.00

Examine the plant asset record. What is the first step in completing this type of record on any plant asset?

• Record the year's annual depreciation expense

• Record section 2 information

• Complete the Annual Depreciation Column

• Complete Section 1 with all the required data

Calculate the (7 month) partial year Depreciation Expense of an asset that cost $3,250.00 with an estimated salvage value of $250.00 and a useful life of 5 years using the straight-line method.

• $250.00

• $350.00

• $150.00

• $50.00

Calculate the 1st year deprecation of an asset that cost $25,000.00 with a 5 year useful life and a $2,500.00 estimated salvage value, using the 40% double declining-balance method.

• $4,500.00

• $375.00

• $10,000.00

• $15,000.00