1. When originally purchased, a vehicle had an estimated useful life of 8 years. The vehicle cost $51,000 and its estimated residual value is $2,000. After 3 years of straight-line depreciation, the assets total estimated useful life was revised from 8 years to 5 years and there was no change in the estimated residual value. The Depreciation Expense in year 4 is:

a. $9,525b. $9,800c. $3,338d. $15,313

1. 2.

A company paid $510,000 to purchase equipment and $16,000 to have the equipment delivered to and installed in the company's production facilities. The equipment is expected to be used a total of 29,000 hours throughout its estimated useful life of six years. The estimated residual value of the equipment is $6,000. The company began using the equipment on May 1, 2016. The company has an October 31, 2016 year-end. It used the equipment for a total of 12,200 hours between May 1 and October 31, 2016. Using the units-of- production method, what amount of depreciation expense would the company report in the income statement prepared for the year-ended October 31, 2016?

a. $109,379 b. $520,000 c. $212,759 d. $218,759

3.

Your company rents computers to local businesses and schools. You have 4,000 computers with a book value of $185,000. As a result of changing technology, your computers are more difficult to rent so you must drastically reduce your rental price, which causes a decrease in estimated future cash flows. The fair value of the computers is estimated to be $119,500 because of their outdated technology. Your company should report an asset impairment loss of:

a. $119,500. b.$65,500. c. $0 d. $185,000.

4.

Sketches Inc. purchased a machine on January 1, 2016. The cost of the machine was $26,000. Its estimated residual value was $8,000 at the end of an estimated 5-year life. The company expects to produce a total of 20,000 units. The company produced 1,000 units in 2016 and 1,450 units in 2017.

Required:
a.	Calculate depreciation expense for 2016 and 2017 using the straight-line method.

b.	Calculate the depreciation expense for 2016 and 2017 using the units-of-production method. (Do not round your intermediate calculations. Round your final answers to the nearest whole dollar.)

c.	Calculate depreciation expense for 2016 through 2020 using the double-declining balance method.(Round your final answer to nearest dollar value.)

5.

[The following information applies to the questions displayed given below.]

The Doodad Company purchases a machine for $800,000. The machine has an estimated residual value of $140,000. The company expects the machine to produce two million units. The machine is used to make 480,000 units during the current period.

17. Required information

If the units-of-production method is used, the depreciation rate is:

$1.67 per unit. $0.29 per unit. $0.33 per unit. $1.38 per unit.

6.

Which of the following statements is correct? Depreciation allocates the cost of tangible assets over their useful lives. Depreciation allocates the cost of intangible assets over their useful lives. Amortization allocates the cost of tangible assets over their useful lives. The term "depreciation" relates to all long-lived assets whereas "amortization" relates only to intangible assets.

7.A category of long-lived assets that are depleted over time is: delivery equipment. natural resources. machinery. cash.

8.The proper accounting for natural resources is to record the original cost as an: asset, then later transfer amounts to Inventory as the resource is depleted, and finally expense the cost as the resources are sold. asset, then expense the cost over its useful life. expense in the period purchased. asset, and then expense the cost over its useful life using straight-line depreciation.

9. The fixed asset turnover is the: number of sales dollars generated by each dollar of total assets. rate at which inventories are being rotated. number of dollars in notes payable generated by each dollar in fixed assets. number of sales dollars generated by each dollar of fixed assets.

10.A company paid $500,000 to purchase equipment and $15,000 to have the equipment delivered to and installed in the company's production facilities. The equipment is expected to be used a total of 28,000 hours throughout its estimated useful life of six years. The estimated residual value of the equipment is $5,000. The company began using the equipment on May 1, 2016. The company has an October 31, 2016 year-end. It used the equipment for a total of 11,200 hours between May 1 and October 31, 2016. Using the units-of- production method, what amount of depreciation expense would the company report in the income statement prepared for the year-ended October 31, 2016? $102,000 $198,000 $204,000 $206,000

11.Flynn Company purchased a building for $400,000. At the end of the current year, the book value of the building is $220,000 and its fair value is $180,000. Assuming the building is rented to a tenant, the sum of future cash flows from the rental of the building is expected to be $160,000. What is the amount of impairment loss? $0 $20,000 $40,000 $120,00012. A corporation using the double-declining-balance method of depreciation purchased a new machine on January 1, 2016. The machine cost $200,000, had an estimated useful life of 8 years and $25,000 residual value at the end of its useful life. Required information Use the information above to answer the following question. What is the balance of the Accumulated Depreciation account at the end of 2017? $37,500 $112,500 $50,000 $87,50013.Mia Hero Shop sold its table with a book value of $1,000 for $800. Mia Hero will record: a loss on the sale. a gain on the sale. depreciation expense of $200. cash received of $1,000.