SL Depreciation

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

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

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

Why do we depreciate assets?

• They decline in value over time!

• They become obsolete over time!

• Wear and tear makes them less valuable!

• All of the Above!

What is one advantage of the straight line method?

• Most of the depreciation happens later in the asset's life

• Depreciation is consistent

• More of the depreciation happens early in the asset's life

• It eliminates all depreciation.

Jo-Jo purchases a new machine for her business on January 1 of the current year. The cost is $8,700 and the residual value is $700. She estimates the useful life will be 5 years.

Using the straight line method, what will her first year depreciation be?

• $8,000

• $1,740

• $1,600

• $3,200

Jo-Jo purchases a new machine for her business on January 1 of the current year. The cost is $8,700 and the residual value is $700. She estimates the useful life will be 5 years.

Using the straight line method, what will her second year depreciation be?

• $8,000

• $1,740

• $1,600

• $3,200

Widgets-R-Us buys a widget making machine for $500,000 with a residual value of $50,000. The useful life of the machine is estimated to be 15 years.

Using the straight line method, what is the depreciation in the 3rd year?

• $450,000

• $30,000

• $60,000

• $90,000