Here is the quiz. Thank you! it is Concerning Intermediate Accounting.

Question 1 On January 1, of the current year, Maryland Mills purchased equipment for $180,000. The equipment had an estimated useful life of ten years and an estimated residual value of $40,000. Using the double-declining-balance method, how much depreciation should Maryland record on the asset at the end of the current year? a. $9000 b. $18000 c. $28000 d. $36000 1 points Question 2 The Yakima Company purchased equipment on January 1, of the current year, for $100,000. The equipment had an estimated residual value of $10,000, an estimated useful life of five years, and estimated lifetime output of 18,000 units. In the of the current year, the company produced 4,400 units and recorded depreciation expense of $22,000. What depreciation method did the company use? a. straight-line b. sum-of-the-years'-digits c. double-decliningbalance d. units-of-output 1 points Question 3 Keller Industries uses the straight-line depreciation method. One asset had been purchased for $6,000. Annual depreciation expense was $600.00 after considering residual value of $1,000. What was the approximate life of the asset? a. 5.0 years b. 8.3 years c. 9.5 years d. 10 years 1 points Question 4 On January 1, of the current year, Dilley Foods, Inc., purchased an asset for $21,740. It was estimated that the asset life was seven years, after which it would have a residual value of $1,300. Assuming the use of the sum-of-the-years'-digits method, depreciation expense for the current year would be a. $2,555 b $4,380 . c. $5,110 d $5,435 . 1 points Question 5 A student is defending a certain depreciation method. She uses the argument that repairs and maintenance costs will probably increase as the asset gets older. She also argues that the asset will produce less as it gets older. What depreciation method is she probably defending? a. straight-line b. sum-of-the-years'-digits c. sinking-fund d. activity 1 points Question 6 A company purchased ten desktop computers at a cost of $1,500 each and used the group depreciation method. Which of the following entries would be correct when recording the subsequent sale of an individual computer for $500 (group accumulated depreciation is $6,000)? a. Cash 500 Accumulated Depreciation 600 Computers b. 1,100 Cash 500 Accumulated Depreciation 1,000 Computers c. Cash 1,500 500 Computers d. 500 Cash 500 Accumulated Depreciation 600 Computers Gain on Sale 1 points 1,000 100 Question 7 Hawkins Dental Services purchased three assets with the following characteristics: Residual Asset Cost Value Life Photocopier $12,000 $2,000 10 years Computer 6,800 1,200 4 years Typewriter 1,500 250 5 years Assuming Hawkins uses straight-line depreciation, the composite depreciation rate is a. 10.1% b. 13.1% c. 15.7% d. 18.2% 1 points Question 8 Which one of the following statements is not a disadvantage of the group and composite methods of depreciation? a. faulty estimates are concealed for long periods b. gains are deferred beyond the period in which they actually occurred c. recordkeeping is complex and costly d. losses are not recognized in the period in which they occur 1 points Question 9 The Pecan Street Ice Cream Company sells equipment costing $60,000 on July 1st of the current year. The accumulated depreciation through the end of last year is $15,000 (representing straight-line depreciation of $3000 per year). Cash is collected in the amount of $10,000. Select the statement from the following that is true. a. Accumulated depreciation should be debited for $15,000 b. A loss should be debited for $33,500 c. a gain should be credited for $10,000. d. Accumulated depreciation should be credited for $16,500. 1 points Question 10 On January 1, year 1 Bumper Corporation acquired a machine at a cost of $41,000. Originally, the machine's service life was estimated to be ten years and its residual value to be $1,000. The straight-line method was used for depreciation. On January 1, year 7, it was determined that the depreciation amount should be changed. The machine's remaining service life was estimated at five years and its residual value at $1,500. For the end of year 7, in regard to this machine, Bumper should record depreciation of a. $3,100 b $2,900 . c. $3,400 d $4,000 . 1 points Question 11 Tangible assets that are attached to natural resources are depreciated over a. the life of the natural resource b. the shorter of the tangible asset's life or the natural resource's life c. the life of the tangible asset d. the longer of the tangible asset's life or the natural resource's life 1 points Question 12 An impairment loss must be recognized when the asset's: a. future undiscounted cash flows are less than book value b. book value is lower than its fair value. c. present value is lower than its fair value. d. present value is higher than its fair value. 1 points Question 13 Virginia Poultry Co. paid $8,750 for some land that was expected to have 50,000 units of a natural resource on it. Development costs amounted to $520. It was expected that the land would require $780 of reclamation costs in excess of the estimated selling price of the land after production. In the first year of mining, 5,000 units of the natural resource were mined. At the beginning of the second year, it was estimated that only 40,000 units of the natural resource remained and reclamation costs would be $935 in excess of the estimated selling price of the land after production. In the second year, 9,000 units were mined. What was the amount of depletion for the second year? a. $2,105.10 b $3,220.00 . c. $2,070.00 d $1,836.90 . 1 points Question 14 Which of the following is true regarding IFRS versus U.S. GAAP depreciation requirements? A. IFRS require systematic and rational methods; GAAP requires systematic methods. B. IFRS require systematic and rational methods; GAAP requires rational methods. C. IFRS require systematic methods; GAAP requires systematic and rational methods. D. IFRS require rational methods; GAAP requires systematic and rational methods. 1 points Question 15 The determination of impairment losses differs under IFRS versus GAAP in that A. only GAAP permits a value-in-use estimate B. only IFRS employs a disposal approach as a measure of fair value C. only GAAP compares the fair value to cost D. only IFRS permits a value-in-use estimate 1 points Question 16 Impairment losses may be reversed under A. GAAP IFRS Yes Yes B. GAAP IFRS Yes No C. GAAP IFRS No Yes D. GAAP IFRS No No