a. No erl b. paiment of E tcosts of $200,000 anal We of 20 years and Spring 2019 ACCT 300 Intermediate Accounting I Test #4 1. Answer all questions 2. Use a scantron form 1." Which of the following is not a method for computing depreciation expense? Straight line .Activity or units of output Sum-of-the-years' digits d.) Depreciation allowance method 2. A company has a building that was purchased at $3,.200,000. The building is estimated to have a disposal/salvage value of $200,000 after estimated useful life of 50 years. How much is annual depreciation expense on the building using the straight-line method? $64,000 b) $60,000 c. $50,000 d. $68,000 3. Excel Company purchased equipment for $500,000 and put it to use on January 1 2015. The equipment has estimated salvage value of $20,000 and estimated useful life of 20 years. How much is the accumulated depreciation on December 31, 2018 using the straight-line method of depreciation? a. $24,000 b. $72,000 C $96,000 $100,000 4. Equipment was purchased 10 years ago at $80,000. It is depreciated on straight-line basis to 15 years estimated useful life and salvage value of $5,000. After 10 years, the equipment was disposed of for $12,000. How much was the loss on disposal? a. $12,000 b. $30,000 $63,000 d.) $18,000 5. Which of the following is a capital expenditure? a. purchase of an item of PPE b. depreciation of item of PPE c. minor repair of an item of PPE d. all are