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Final Examination in CE 223 - Part 02

Total questions: 25

Worksheet time: 52mins

Name
Class
Date
1.
A certain equipment has a first cost ₱900,000, useful life of 8 years and a salvage value of ₱200,000. What is the annual depreciation using SLD?
a)
₱97,500
b)
₱87,500
c)
₱57,550
d)
₱67,550
2.
A certain equipment has a first cost ₱900,000, useful life of 8 years and a salvage value of ₱200,000. What is the total depreciation after 4 years using SLD?
a)
₱100,000
b)
₱400,000
c)
₱350,000
d)
₱150,000
3.
A certain equipment has a first cost ₱900,000, useful life of 8 years and a salvage value of ₱200,000. What is the book value after 4 years using SLD?
a)
₱550,000
b)
₱350,000
c)
₱400,000
d)
₱300,00
4.
What is the book value of equipment purchased 4 years ago for $15,000 if it is depreciated using the sum of the year’s digits (SOYD) method? The expected life is 6 years.
a)
$2,142.86
b)
$3,142.86
c)
$2,542.86
d)
$6,142.86
5.
Determine the book value at the end of 4 years of a machine costing ₱20,000 having a serviceable life of 8 years and a salvage value of ₱2,000 at the end of that time. Use SOYD Method?
a)
₱7,000
b)
₱3,000
c)
₱6,000
d)
₱5,000
6.
A machine costing ₱720,000 is estimated to have a life of 10 years. If the annual rate of depreciation is 25%, determine the total depreciation using the constant percentage method or declining balance method.
a)
₱659,454.27
b)
₱679,454.27
c)
₱579,454.27
d)
₱589,454.27
7.
A machine costing P45,000 is estimated to have a book value of P4,350 when retired at the end of 6 years. Depreciation cost is computed using a constant percentage of the declining book value. What is the annual rate of depreciation in %?
a)
33.25%
b)
35.25%
c)
32.25%
d)
34.32%
8.
An asset is purchased for P9,000.00. Its estimated life is 10 years after which it will be sold for P1,000.00. Find the book value during the first year if sum-of-years’ digit (SYD) depreciation is used.
a)
P8,000.00
b)
P7545.00
c)
P6,500.00
d)
P6,000.00
9.
An asset is purchased for P500,000.00. The salvage value in 25 years is P100,000.00. What is the total depreciation in the first three years using straight-line method?
a)
P48,000
b)
P32,000
c)
P24,000
d)
P16,000
10.
A company purchases an asset for P10,000.00 and plans to keep it for 20 years. If the salvage value is zero at the end of the 20th year, what is the depreciation in the third year? Use sum of the years' digits depreciation.
a)
P1000.00
b)
P937.00
c)
P857.00
d)
P747.00
11.
A company bought an equipment for P56,000. Other expenses including installation amounted to P4,000. The equipment is expected to have a life of 16 years with a salvage value of 10% of the original cost. Determine the book value at the end of 12 years by the straight-line method.
a)
P19,500
b)
P18,530
c)
P20,500
d)
P19,200
12.
Calculate the 5th year depreciation charge using a fixed percentage method of an asset costing P1000 having a life expectancy of 5 years and an estimated salvage value of P400.
a)
P90
b)
P78
c)
P80
d)
P84
13.
A manufacturing company buys a machine for $50,000. It estimates the machine’s useful life is 20 years and that it can then be sold for $5000. Using straight-line depreciation, what is the annual depreciation charge?
a)
$2000
b)
$2250
c)
$2500
d)
$2750
14.
A certain copier machine cost P150,000 with a trade-in value of P15,000 after making 800,000 copies. Using the declining balanced method, what is the book value when the machine had made 300,000 copies?
a)
P68,111
b)
P62,531
c)
P64,896
d)
P63,254
15.
An asset is purchased for P120,000. Its estimated life is 10 years, after which it will be sold for P12,000. Find the depreciation for the second year using the sum of the years digit method.
a)
P17,342
b)
P17,632
c)
P17,673
d)
P17,505
16.

Calculate the book value after 6 years of a P10,000 machine having a useful life of 10 years and a salvage value of 10% of its original cost at that time. Use straight-line depreciation.

a)
P4200
b)
P4500
c)
P4400
d)
P4600
17.
A machine has an initial cost of P50,000 and a salvage value of P10,000 after 10 years. What is the book value after 5 years using straight-line depreciation?
a)
P25,000
b)
P15,500
c)
P35,000
d)
P30,000
18.
A machine costing P480,000 has a life expectancy of 12 years with a salvage value of 10% of the first cost. What is the book value after five years using the declining balance method?
a)
P183,892
b)
P196,432
c)
P152,758
d)
P214,785
19.
The first cost of equipment is P100,000 and estimated to have a book value of P30,000 when retired at the end of 10 years. Determine the annual rate of depreciation using a constant percentage declining balance method.
a)
11.34%
b)
10.21%
c)
10.33%
d)
10.56%
20.
An asset is purchased for P9,000.00. Its estimated economic life is 10 years after which it will be sold for P1,000.00. Find the depreciation in the first three years using sum of the years digit method.
a)
P3,927.27
b)
P3,464.35
c)
P3,324.32
d)
P3,743.26
21.
A company purchased an asset for P15,000 and plans to keep it for 20 years. If the salvage value is zero at the end of the 20th year, determine the depreciation in the 4th year? Use SYD.
a)
P1214
b)
P1157
c)
P1087
d)
P1206
22.
A machine costs P8,000 and an estimated life of 10 years with a salvage value of P500. What is its book value after 8 years? Using straight-line method.
a)
P2500
b)
P2000
c)
P3000
d)
P4000
23.
The corporation purchased a machine for P1 million. Freight and installation charges amounted to 3% of the purchase price. If the machine shall be depreciated over a period of 8 years with a salvage value of 12%. Determine the depreciation charged during the 5th year using the sum of the years digit method.
a)
P101,107.11
b)
P107,110.11
c)
P170,110.11
d)
P100,711.11
24.
An Engineer bought an equipment for P500,000. He spent an additional amount of P30,000 for installation and other expenses. The salvage value is 10% of the 1st cost. If the book value at the end of 5 years is P291,500 using straight-line depreciation, compute the life of the equipment in years.
a)
8
b)
9
c)
10
d)
11
25.
ABC corporation makes its policy that for every new equipment purchased, the annual depreciation cost should not exceed 18% of the first cost at any time without salvage value. Determine the length of service using SOYD method.
a)
7 years
b)
8 years
c)
9 years
d)
10 years