7. ____ Lemming acquired a building for $60,000 that is estimated to last for 20 years. Lemming depreciates the building on a straight line basis, with no salvage value. The book value of the building after 4 years will be: a. $48,000 b. $55,000 c. $45,000 d. the same as the market value of the building

10. ____ Nell uses double declining balance depreciation. How much depreciation should Nell record in year one on Equipment with a cost of $8,000, salvage value of $1,000 and life of 5 years? A. $1,600 b. $3,200 c. $1,800 d. $3,600

11. ____ The depreciable cost of an asset is equal to the cost minusa. the accumulated depreciation b. the salvage value c. the straight line rate d. the DDB rate

12. ____ Johnson purchases a piece of equipment with an estimated useful life of 8 years. The DDB rate for this asset would bea. 8% b. .125 c. .25 d. .50

13. ____ On which financial statement would Accumulated Depreciation--Equipment be reported? A. Balance Sheet b. Income Statement c. Owners Equity Statement d. None of these

14. ____ Name an accelerated depreciation method that is used ONLY for tax purposes: a. SL b. Units of Activity c. MACRS d. all of these are accelerated methods for tax purposes

15. ____ Marley and Scrooge go into business together as partners in a partnership. Scrooge contributes land and equipment. These contributed assets should be valued at: a. original cost paid by Scrooge b. book value as they were recorded on Scrooges books c. current fair market value, with approval of Marley d. none of these