ACC2310 FINANCIAL NCCOUNT th i to the Creek Construction w .. The model from the Copy 200C A Alas Of 12.000 B. Again of $2.00 C. A loss of 538. D. Again of $20,000 E. An expense of 52.500 w n the specie t e 14. What would the depreciation experbe your o method when cost is $16.000, esition value is $2.500, A) $2,000 B) $1.500 C) $1.250 D) $1.000 15 What would be the depreciation expering double cet for year 2 of a machine costing $20.000, when residuale s 53300, A) 53.600 B) $6,000 C) 55,000 D) $3.000 16 Property, plant and equipments: A. Current assets B. Used in business operations. C. Natural resources D. Long-term investments. E. Never depreciated. BJECTIVE EATURE: possible e mark pertine 17 Property, plant and equipment include: A. Land. B. Land improvements C. Buildings. D. Machinery and equipment. E. All of these answers are correct. MPLE OF STUDENT 18 Land improvements are: A. Assets that increase the usefulness of land, but that have a limited useful life B. Assets that increase the usefulness of land, and like land are not depreciated. C. Included in the land account D. Expensed in the period incurred. Yever depreciated ACC1310 FINANCIAL ROLU o ms ro r hours 24 What would be the depreciation expense in your machine that cost $15.000 had wole of years, o machine hours of 50 Production in year I was 10 A) $3.000 B) 54.000 C) 56,000 D) 55,000 d e 25 What would be the accumulated depreciation the end of you for goo the straight-line method when the cost is 511.00, tidak ses 10 is 10 years? A) 56.600 B) 56,000 C) $1,000 D) $3,000 years Yamara Corpo years or o cara year and Based on the following information, please complete question 26 und Yamara Company purchased a $80.00 machine on a 1. The machine is expected to useful life of 10 years or 60,000 operating hours and residual value of 55.500. The ci w used for 6,000 hours in the first year and 4 100 hours in the cond year. Computer s depreciation expense for the first and second years w e each of the methods below Year 1 Year 2 Method Straight-line Units-of-production Double declining balance ETELY b) SS c) S UBJECTIVE FEATURE: talpos ve points 26 Compute the amount of depreciation expense for the first Yeat A) $7500, $7500, S16000 B) $16,000, S12800, S5500 C) $7500, S16000, $12800 D) $7500, $7500, S12800 point maxim AMPLE OF STUDENT 27 Compute the amount of depreciation expense for the second Year A) S7000, S6,600, 512800 B) $7500, $16000, S12800 C) 87500, $5500, 512800 D) $7500, $5500, S16000 01 True and False (11 Questionsximar 1. Property, plant and equipment are assets held for business operation 2. The purchase of real estate that includes land, building, and land improvements is not called a lump sum purchase. 3. Any expenditure for legal fees, surveying, and accrued property taxes should be included in the cost of land. 4. Sports World spent $17,000 to remodel its store. This cost will be recognized with a debit to store Building 5. Residual value is an estimate of an asset's value at the end of its useful life. 6. Sports World purchased store equipment for $45.000. The equipment has an estimated residual value of $6,000, with an estimated useful life of 10 years. The annual depreciation using the straight-line method will be $3,900 per year. 7. An asset with a current book value of $5,000 has a current market value of $2,000. The company should recognize an impairment loss of $3,000. 8. The gain or loss from disposal of property, plant and equipment is the difference between an asset's book value and the value received. 9. Equipment costing $14,000 with accumulated depreciation of $10,000 was sold for $5.000. The company should recognize a $1,000 loss on disposal of the equipment. 10. The depreciation method that ignores the salvage value is double declining-balance. 11. Any expenditure for legal fees, surveying, and accrued property taxes should not be included in the cost of land. 1 22 Multiple Choies (19 Questions (12-30) x1marks) 12 Property, plant and equipment are: A. Tangible assets used in the operation of a business having a useful life of more than one accounting period. B. Current assets. C. Long-term investments. D. Intangible assets used in the operations of a business having a useful life of more than one accounting period. E. Tangible assets used in the operation of business having a useful life of less than one accounting period ACC1310 FINANCIAL ACCOUNTI din parking lot, and To $10,000 19 Sports World chased property for $100,000. The property included a building, parking land. The building w aywined at $65.000, the land at $10,000, and the parking lot 37 The value of the land to be recorded in the hooks should be A. 536,522 B. 534,73 C$40,000 D. 536,364 E. 548,696 20 The relevant factor(s) in calculating depreciation is (are): A. Cost B. Residual value. C. Useful life. D. Both cost and useful life. E. All of these answers are correct 21 Residual value is: A. The same as an asset's service life. B. The cost of an asset minus its accumulated depreciation. C. An estimate of the asset's value at the end of its useful life. D. Another name for market value. E. All of these answers are correct. 22 Depreciation: A. Measures the decline in market value of an asset. B. Measures physical deterioration of an asset. C. Is the process of allocating to expense the cost of property, plant and equipment? D. Is a cause of obsolescence? E. All of these answers are correct 23 Sports Med sold an X-ray machine that originally cost $100,000 for $60,000. The accumulated depreciation on the machine to the date of sale was $40,000. On this sale, Sports Med should recognize: A. $0 gain or loss. B. $20,000 gain. C. $25,000 gain. D. $40,000 loss. E. $60,000 gain