Question
Asset C3PO has a depreciable base of $18.15 million and a service life of 10 years. What would the accumulated depreciation be at the end
Asset C3PO has a depreciable base of $18.15 million and a service life of 10 years. What would the accumulated depreciation be at the end of year five under the sum-of-the-years' digits method? (Do not round intermediate calculations.)
Multiple Choice
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$4.95 million.
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$9.07 million.
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$13.20 million.
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None of these answer choices are correct.
2.Cutter Enterprises purchased equipment for $99,000 on January 1, 2018. The equipment is expected to have a five-year life and a residual value of $6,900. Using the sum-of-the-years'-digits method, depreciation for 2019 and book value at December 31, 2019, would be:
Multiple Choice
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$26,400 and $32,700 respectively.
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$24,560 and $36,840 respectively.
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$24,560 and $43,740 respectively.
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$26,400 and $39,600 respectively.
3.
Cutter Enterprises purchased equipment for $42,000 on January 1, 2018. The equipment is expected to have a five-year life and a residual value of $6,000. Using the double-declining balance method, depreciation for 2019 would be:
Multiple Choice
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$16,800.
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$8,640.
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$10,080.
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None of these answer choices are correct.
3.Cutter Enterprises purchased equipment for $42,000 on January 1, 2018. The equipment is expected to have a five-year life and a residual value of $6,000. Using the double-declining balance method, depreciation for 2019 would be:
Multiple Choice
-
$16,800.
-
$8,640.
-
$10,080.
-
None of these answer choices are correct.
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