5

1. On January 1, 20X1, ZipCo, which uses UOP depreciation, purchasesa truck for $24,000 with an estimated useful life of 100,000 miles and a residual value of $4,000. Miles driven are as follows:
2. Year
3. Miles
4. 20X1
5. 20,000
6. 20X2
7. 15,000
8. 20X3
9. 10,000
10. 20X4
11. 25,000
12. 20X5
13. 30,000
15. What is the depreciation rate?
16. it depends on the number of miles driven
17. $0.24 per mile
18. $0.20 per mile
19. $0.28 per mile

2 points

QUESTION 6

1. Your company uses the DDB method. Assets purchased between the 1^stand 15^thof the monthare depreciated for the entire month; assets purchased after the 15^thof the month are treatedas though they were acquired the following month. On July 1, 20X1, your company purchases a machine for $200,000 with a useful life of 10 years and a salvage value of $20,000. What is 20X2 depreciation expense?
2. $36,000
3. $32,400
4. $32,000
5. $28,800

2 points

QUESTION 7

1. ABC Company purchased equipment on January 1 with an original cost of $50,000. Its estimated useful life is 5 years or 180,000 hours and the residual value is $5,000. Usage of the machine for each year is as follows:
3. Year 1
4. 42,000 hours
5. Year 2
6. 37,500 hours
7. Year 3
8. 39,000 hours
9. Year 4
10. 43,200 hours
11. Year 5
12. 31,000 hours
15. Calculate depreciation for the first year using theDouble Declining Balance Method.
17. $10,500
18. $18,000
19. $20,000
20. $9,000
24. $10,000

2 points

QUESTION 8

1. Your company uses the DDB method. Assets purchased between the 1^stand 15^thof the monthare depreciated for the entire month; assets purchased after the 15^thof the month are treatedas though they were acquired the following month. On April 6, 20X1, your firm purchases a machine for $250,000 that management estimates will last 15 years and have a salvage value of $10,000. What is 20X1 depreciation expense?
2. $32,000
3. $24,000
4. $33,333
5. $25,000

2 points

QUESTION 9

1. On February 28, 20X1, your company purchases a machine for $150,000 with an estimated useful life of last 10 years and a salvage value of $10,000. Your company uses SYD depreciation and depreciates assets purchased between the 1^stand 15^thof the month for the entire month; assets purchased after the 15^thof the month are treated as though they were acquired the following month. What is 20X1 depreciation expense?
2. $22,727
3. $25,455
4. $27,273
7. $21,212