1. Choose the one alternative that best completes the statement or answers the question. Solve the problem. Round dollar amounts to the nearest dollar.
2. Find the yearly straight-line depreciation of a home theatre system including the receiver, main audio speakers, surround sound speakers, audio and video cables, and blue-ray player that costs $3100 and has a salvage value of $900 after an expected life of 5 years in a hotel lobby.

3. 	$900
   	$180
   	$440
   	$620

4. 10 points

Question 2

1. 1. Solve the problem. Round unit depreciation to nearest cent when making the schedule, and round final results to the nearest cent.

      A barge is expected to be operational for 280,000 miles. If the boat costs $19,000.00 and has a projected salvage value of $1900.00, find the unit depreciation.

      	$0.06
      	$0.60
      	$0.70
      	$0.07

2. 10 points

Question 3

1. 1. Solve the problem. Round unit depreciation to nearest cent when making the schedule, and round final results to the nearest cent.

      A construction company purchased a piece of equipment for $1520. The expected life is 9000 hours, after which it will have a salvage value of $380. Find the amount of depreciation for the first year if the piece of equipment was used for 1800 hours. Use the units-of-production method of depreciation.

      	$177.33
      	$136.50
      	$304.00
      	$228.00

2. 10 points

Question 4

1. 1. Solve the problem using the information given in the table and the weighted-average inventory method. Round to the nearest cent.

      Calculate the average unit cost.

      Date of Purchase	Units Purchased	Cost Per Unit
      Beginning Inventory	25	$32.12
      March 1	70	$25.24
      June 1	65	$36.24
      August 1	40	$20.81

      	$32.90
      	$143.95
      	$28.79
      	$24.77

2. 10 points

Question 5

1. 1. Solve the problem using the information given in the table and the weighted-average inventory method. Round to the nearest cent.

      Calculate the cost of ending inventory.

      Date of Purchase	Units Purchased	Cost Per Unit
      Beginning Inventory	25	$33.18
      March 1	70	$28.60
      June 1	65	$38.75
      August 1	40	$21.49
      Units Sold	68

      	$1461.32
      	$3116.05
      	$4298.00
      	$4098.50

2. 10 points

Question 6

1. 1. Solve the problem using the information given in the table and the weighted-average inventory method. Round to the nearest cent.

      Calculate the cost of goods sold.

      Date of Purchase	Units Purchased	Cost Per Unit
      Beginning Inventory	25	$34.13
      March 1	70	$27.34
      June 1	65	$35.61
      August 1	40	$20.77
      Units Sold	62

      	$4079.63
      	$1832.87
      	$9992.13
      	$5912.50

2. 10 points

Question 7

1. 1. Solve the problem. Use a fraction for the rate and round dollar amounts to the nearest cent.

      Jeremy James is depreciating solar panels purchased for $3600. The scrap value is estimated to be $900. He will use double-declining-balance and depreciate over 6 years. What is the first year's depreciation?

      	$1200.00
      	$450.00
      	$600.00
      	$900.00

2. 10 points

Question 8

1. 1. Solve the problem. Use a fraction for the rate and round dollar amounts to the nearest cent.

      Eric Johnson is depreciating a kitchen oven range purchased for $1720. The scrap value is estimated to be $172. He will use double-declining-balance and depreciate over 30 years. What is the first year's depreciation?

      	$57.33
      	$103.20
      	$51.60
      	$114.67

2. 10 points

Question 9

1. 1. Solve the problem. Use a fraction for the rate and round dollar amounts to the nearest cent.

      Jane Frankis is depreciating a train engine purchased for $86,000. The scrap value is estimated to be $5000. She will use double-declining-balance and depreciate over 40 years. What is the first year's depreciation?

      	$2025.00
      	$4050.00
      	$4300.00
      	$2150.00

2. 10 points

Question 10

Find the depreciation for the indicated year using MACRS cost-recovery rates for the properties placed in service at midyear. Round dollar amounts to the nearest cent.

Property Class	Depreciation Year	Cost of Property
3-year	3	$86,600.00

	$28,863.78
	$17,320.00
	$12,825.46
	$16,627.20