Accounting 804 revision 4

A business purchased machine of BD 13000 . It estimated the salvage value for BD1000 and the useful life of 4 years. The business is using double declining balance method then the depreciation rate will be :

• 50%

• 25%

• 13%

• 52%

A business purchased a truck of BD15000 . It estimated the salvage value for BD1000 and the useful life of 4 years and the estimated useful life in miles is 70000 . The depreciation cost per unit is :

• 0.2

• 3500

• 5

• 4.66

On Dec 31 2018, Ahmed retires its computer printers, which cost BD14,000. The accumulated depreciation on these printers is BD14000. The journal entry to record this retirement is :

• DR. Depreciation Expense 14000 and CR. Accumulated Depreciation 14000

• DR. Equipment 14000 and CR. Accumulated Depreciation 14000

• DR. Accumulated Depreciation 14000 and CR. Equipment 14000

• DR. Depreciation Expense 14000 and CR. Equipment 14000

On January 1, 2013 Middle East Company purchase equipment that costs BD65,000 it estimated salvage value BD5,000 at the of its useful life of 5 years. On Jan 1, 2018, the company sold the truck for BD1500 and computed accumulated depreciation until that date BD60,000.Then the company should record a :

• Loss on disposal of BD 3500 on its debit side

• Loss on disposal of BD 3500 on its credit side

• Gain on disposal of BD 3500 on its debit side

• Gain on disposal of BD 3500 on its credit side

On January 1 ,2020 , Ahmed company purchased motor vehicle that costs BD17200 . It will kept for 8 years with a scrap value of BD 1200. Ahmed company is using double declining balance method. The amount of beginning book value on Dec31,2020 as stated in number 1 is :

• BD 17200

• BD 16000

• BD 4000

• BD18400

On January 1 ,2020 , Ahmed company purchased motor vehicle that costs BD17200 . It will kept for 8 years with a scrap value of BD 1200. Ahmed company is using double declining balance method. The amount of depreciation expense on Dec31,2021 as stated in number 2 is :

• BD 3225

• BD 7525

• BD 51600

• BD 12925

On January 1 ,2020 , Ahmed company purchased motor vehicle that costs BD17200 . It will kept for 8 years with a scrap value of BD 1200. Ahmed company is using double declining balance method. The amount of Book value on Dec 31,2015 as stated in number 3 is :

• BD1200

• BD16000

• BD17200

• BD18400

Ahmed company purchased a machine that costs BD 30200 with a freight cost of BD 1300 and a salvage value BD 1500. Ahmed company is using units of production method to calculate depreciation. The amount of book value on DEC31,2018 as stated in number 1 is :

• BD 20000

• BD 11500

• BD 31500

• BD 8500

Ahmed company purchased a machine that costs BD 30200 with a freight cost of BD 1300 and a salvage value BD 1500. Ahmed company is using units of production method to calculate depreciation. The amount of accumulated depreciation in DEC31,2019 as stated in number 2 is :

• BD 19000

• BD 38000

• BD 15000

• BD 30000

Ahmed company purchased a machine that costs BD 30200 with a freight cost of BD 1300 and a salvage value BD 1500. Ahmed company is using units of production method to calculate depreciation. The amount of depreciation expense on December 31,2020 as stated in number 3 is :

• BD 6500

• BD 26000

• BD 650

• BD 7500