30. What is sum-of-the-years'-digits depreciation for 2018? $586,667 b. $660,000 c. $720,000 d. $781,485 a. 31. If, at the end of 2019, Davis Company decides the equipment still has five more years of life beyond 12/31/19, with a salvage value of $200,000, what is straight-line depreciation for 2019? (Assume straight-line used in all years.) a. $240,000 b. $256,667 $290,000 d. $440,000 C. 32. Property, plant and equipment is usually presented in the balance sheet at: Replacement costs less accumulated depreciation. b. a. Historical cost less salvage value. Original cost less accumulated depreciation. Acquisition cost less net book value thereof c. d. 33. As generally used in accounting, what is depreciation? It is a process of asset valuation for balance sheet purposes. a. It applies only to long-lived intangible assets. It is used to indicate a decline in market value of a long-lived asset. d. b. c. It is an accounting process which allocates long-lived asset cost to accounting periods 34. Interest cost incurred during building construction should be allocated to: Land. b Building. Land Improvements. d. Other. C 35. Demolition costs of building on land bought for plant site should be allocated to: a. Expense b. Building cLand Improvements d. Land 36. Back taxes paid on land purchased to be used for a building site should be allocated to: a Building Depreciation c. Land Improvements d. Land b. 37. The cost of marketing research to promote a new product should be alllocated t: a. Cost of goods sold b. Selling/Marketing expense Research and development d. Capital expenditure C 30. What is sum-of-the-years'-digits depreciation for 2018? $586,667 b. $660,000 c. $720,000 d. $781,485 a. 31. If, at the end of 2019, Davis Company decides the equipment still has five more years of life beyond 12/31/19, with a salvage value of $200,000, what is straight-line depreciation for 2019? (Assume straight-line used in all years.) a. $240,000 b. $256,667 $290,000 d. $440,000 C. 32. Property, plant and equipment is usually presented in the balance sheet at: Replacement costs less accumulated depreciation. b. a. Historical cost less salvage value. Original cost less accumulated depreciation. Acquisition cost less net book value thereof c. d. 33. As generally used in accounting, what is depreciation? It is a process of asset valuation for balance sheet purposes. a. It applies only to long-lived intangible assets. It is used to indicate a decline in market value of a long-lived asset. d. b. c. It is an accounting process which allocates long-lived asset cost to accounting periods 34. Interest cost incurred during building construction should be allocated to: Land. b Building. Land Improvements. d. Other. C 35. Demolition costs of building on land bought for plant site should be allocated to: a. Expense b. Building cLand Improvements d. Land 36. Back taxes paid on land purchased to be used for a building site should be allocated to: a Building Depreciation c. Land Improvements d. Land b. 37. The cost of marketing research to promote a new product should be alllocated t: a. Cost of goods sold b. Selling/Marketing expense Research and development d. Capital expenditure C
