2 Answer saved Marked out of 2.0 Flag question Time left 0:24: A business purchases a motor vehicle at a cost of $40,000 for use in normal operations. It has an estimated residual value of $1,000 and useful life of 10 years. After using the fixed asset for 4 years, the business changed its remaining useful life to be 5 years. This means that for the next 5 years, the depreciation expense to be recorded in the books will change and the depreciation expense already recorded in the books for the previous 4 years will............ O a. increase or decrease; it all depends on the new residual value and new remaining life b. remain unchanged c. decrease Od. increase. Clear my choice Next page Question 10 Answer saved Marked out of 2.0 Flag question A fixed asset purchased on March 8, 2020 and is sold on August 25, 2023 is to be depreciated for how long? O a. 3 years Ob. 2 years, 6 months O c. 3 years, 6 months d. 2 years, 5 months Clear my choice Previous page Time left Next p 6. Question 12 Answer saved Marked out of 2.0 P Flag question 2 Time left 0:22:38 J's Gravel Company Ltd. purchase a quarry for $250,000 from which stones and sand will be extracted, estimated at at 4,000,000 tonnes. During the year, 200,000 tonnes were used and sold. Based on this information, which of the following is true? O a. The depletion expense to record for the current year is $1,200 Ob. to record the using up of the resources, accumulated depreciation must be credited. C. The natural resource is to depreciate at $0.06 per ton. d. The depletion rate is 6 cents per ton. Clear my choice Previous page Next page Question 5 Answer saved Marked out of 2.0 Flag question Time left 0:23:41 2 Galen University paid $40 to repair a flat tire on one of its motor vehicles. The accountant incorrectly recorded this as a debit to the accumulated depreciation - motor vehicle. How will this error affect the financial statements? O a. owner's equity on the balance sheet would be understated b. assets on the balance sheet would be understated O c. net income on the income statement would be overstated d. expenses on the income statement would be overstated Clear my choice Previous page Next page 6 Question 12 Answer saved Marked out of 2.0 P Flag question 2 Time left 0:22:38 J's Gravel Company Ltd. purchase a quarry for $250,000 from which stones and sand will be extracted, estimated at at 4,000,000 tonnes. During the year, 200,000 tonnes were used and sold. Based on this information, which of the following is true? a The depletion expense to record for the current year is $1,200 Ob. to record the using up of the resources, accumulated depreciation must be credited. The natural resource is to depreciate at $0.06 per ton. d. The depletion rate is 6 cents per ton. Clear my choice Previous page Next page