1.

The Fall River Corporation bought a plant asset on January 1, 2010, at a cost of $45,000. Estimated residual value is $5,000 and the estimated useful life is 8 years. The company uses

straightminusline

depreciation. On January 1, 2013, Fall River's management revises the total estimated life to be 10 years, with estimated residual value of $2,000. The balance in Accumulated Depreciation on December 31, 2013, is:

A.

$10,000.

B.

$16,358.

C.

$19,000.

D.

$21,429.

2.

The cost of assets acquired in a

lumpminussum

purchase must be allocated using which method?

A.

Relativeminussalesminusvalueminusmethod

B.

Bookminusvalue

method

C.

Per capita method

D.

Cost method

3.

On January 2, 2010, KJ Corporation acquired equipment for $260,000. The estimated life of the equipment is 5 years or 40,000 hours. The estimated residual value is $20,000. What is the balance in Accumulated Depreciation on December 31, 2011, if KJ Corporation uses the

straightminusline

method of depreciation?

A.

$53,625

B.

$51,500

C.

$49,500

D.

$96,000

4.

On January 2, 2010, KJ Corporation acquired equipment for $260,000. The estimated life of the equipment is 5 years or 40,000 hours. The estimated residual value is $20,000. What is the balance in Accumulated Depreciation on December 31, 2011, if KJ Corporation uses the

doubleminusdeclining

balance method of depreciation?

A.

$166,400

B.

$104,000

C.

$38,400

D.

$104,000

5.

An example of a

longminusterm

tangible asset would be:

A.

furniture.

B.

investment in LQH company.

C.

office supplies.

D.

patents.

5.

Amortization expense:

A.

cannot be credited directly to the asset account.

B.

is the title of the expense associated with natural resources.

C.

is recorded for intangible assets with a finite life.

D.

is recorded for assets with an indefinite life.