Chapter 9 Quiz - Principles of Accounting

A machine with a cost of $75,000 has an estimated residual value of $5,000 and an estimated life of 4 years or 18,000 hours. What is the amount of depreciation for the second full year, using the double-declining-balance method?

• $17,500

• $37,500

• $18,750

• $16,667

Reddie Inc purchased a machine costing $75,000 on January 3rd. The machine is expected to last 10 years and 10,000 hours with a salvage value of $4,000. During the first year the machine was used 1,800 hours. What is annual depreciation if Reddie uses the units of production method?

• $7,100

• $7,500

• $12,780

• $13,500

Reader Inc purchased a machine costing $80,000 on January 3rd. The machine is expected to last 10 years and 10,000 hours with a salvage value of $4,000. During the first year the machine was used 1,800 hours. What is annual depreciation if Reader uses the straight-line method?

• $13,680

• $13,500

• $8,000

• $7,600

Tags

CCSS.8.EE.C.7B

A name, term, or symbol used to identify a business and its products.

• patents

• copyright

• trademark

• depreciation

The periodic transfer of cost for a natural resource is called _________________.

• amortization

• depreciation

• depletion

• impairment

Which of the following is an example of a revenue expenditure?

• oil change for vehicle

• installing a new lift on delivery truck

• purchasing a piece of equipment

• purchasing supplies

Which of the following is an intangible asset?

• Goodwill

• Equipment

• Accumulated Depreciation

• Land

The periodic transfer of cost for an intangible asset is called .

• amortization
• depreciation

• depletion

• impairment

Which of the following is a natural resource?

• Timber

• Equipment

• Accumulated Depreciation

• Land

Cane Inc purchased a machine costing $80,000 on January 2nd of year 1. The machine is expected to last 9 years with a salvage value of $8,000. Cane sold the machine for $65,000 on April 1st of year 3. What was the

• $5,000 gain

• $5,000 loss

• $3,000 gain

• $3,000 loss