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29. To calculate depreciation, all the following must be determined except: A) useful life of the asset. B) salvage value of the asset. C)
29. To calculate depreciation, all the following must be determined except: A) useful life of the asset. B) salvage value of the asset. C) acquisition cost of the asset. D) fair market value of the asset. Page 16 30. Byrons, Inc. acquired a piece of equipment on January 3, 2010. The total cost of the equipment was $28,500. Byrons estimated that the equipment would be used for 6 yea before being sold for an estimated $4,500. Assuming the use of straight-line depreciation, the total depreciation expense for the year ending December 31, 2010 was: A) $4,000. B) $4,750. C) $ 5,500. D) $20,000. 31. Windstreamers, Inc. acquired a piece of machinery on January 3, 2010. The total cost of the machinery was $68,000. Windstreamers estimated that the machinery would be used to produce 100,000 units of product before being sold for an estimated $18,000. Windstreamers uses the units-of-production method of depreciation. Assuming the machine produced 18,500 units during the year ending December 31, 2010, the 2008 depreciation expense was: A) $11,500. B) $10,800. C) $8,654. D) $9,250. 32. Oxford Enterprises acquired a delivery truck on January 4, 2010. The total cost of the truck was $87,000. Oxford estimated that the truck would be used for 5 years before being sold for an estimated $16,500. Oxford uses the double-declining balance method of depreciation. The depreciation expense for the year ended December 31, 2010 was: A) $34,800. B) $28,200. C) $12,528. D) $8,880. 33.. For Straight Line Depreciation, which of the following describes depreciable cost? A) Original cost minus accumulated depreciation B) Depreciation expense times the income tax rate C) Original cost minus salvage value D) Accumulated depreciation
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