On 2015 January 1, Jackson Company purchased equipment for $400,000, and installation and testing costs totalled $40,000. The equipment has an estimated useful life of 10 years and an estimated salvage value of $40,000. If Jackson uses the straight-line depreciation method, the depreciation expense for 2015 is: Select one: a. $36,000. b. $88,000. c. $40,000. d. $44,000. e. $80,000. Question 2 Not yet answered Marked out of 10.00 Not flaggedFlag question Question text On July 1, 2015, Jackson Company purchased equipment for $400,000, and installation and testing costs totaled $40,000. The equipment has an estimated useful life of 10 years and an estimated salvage value of $40,000. If Jackson uses the double-declining-balance method, the depreciation expense for 2015 would be: Select one: a. $40,000. b. $44,000. c. $72,000. d. $88,000. e. $36,000. Question 3 Not yet answered Marked out of 10.00 Not flaggedFlag question Question text Hatfield Company purchased a computer on January 1, 2013 for $10,000. The computer had an estimated salvage value of $3,000 and an estimated useful life of five years. At the beginning of 2015, the estimated salvage value changed to $1,000, and the computer is expected to have a remaining useful life of two years. Using the straight-line method, the depreciation expense for 2015 is: Select one: a. $1,800. b. $1,750. c. $1,400. d. $3,100. e. $2,250. Question 4 Not yet answered Marked out of 10.00 Not flaggedFlag question Question text To be classified as a plant asset, an asset must (mark all that apply). Each incorrect answer results in a negative point mark. Select one or more: a. Cost over $100,000. b. Be tangible. c. Be used in business operations rather than held for resale. d. Have a useful service life of more than one year. e. Have a salvage value at least 20% of the purchase price. Question 5 Not yet answered Marked out of 10.00 Not flaggedFlag question Question text Which answer is FALSE? In accounting for plant assets, accountants must: Select one: a. Account for the disposal of the asset. b. Record subsequent expenditures on the asset. c. Record unit capacity of the asset. d. Record the acquisition cost of the asset. e. Record the allocation of the asset's original cost to periods of its useful life through depreciation. Question 6 Not yet answered Marked out of 10.00 Not flaggedFlag question Question text The units-of-production depreciation formula is: Select one: a. (x)Deprecation per period = Asset cost + Estimated salvage value. b. (y)Estimated total units of production(service)during useful life of asset. c. (z)Depreciation per period = Depreciation per unit Number of units of goods or services produced. d. (x), ????, and (z). e. (x) and (z) only. Question 7 Not yet answered Marked out of 10.00 Not flaggedFlag question Question text When a fully depreciated asset is still in use: Select one: a. The accrued portion of accumulated depreciation should remain unchanged and no more depreciation should be taken. b. The cost should be adjusted to market value. c. Prior years' depreciation should be adjusted. d. It should be written off the books. e. Part of the depreciation should be reversed. Question 8 Not yet answered Marked out of 10.00 Not flaggedFlag question Question text A truck costing $45,000 and having an estimated salvage value of $4,500 and an original life of five years is exchanged for a new truck. The cash price of the new truck is $57,000. A trade-in allowance of $22,500 is received for the old truck and the difference is paid in cash. The old truck has been depreciated for three years using the straight-line method. The new truck would be recorded at: Select one: a. $43,200. b. $57,000. c. $34,500. d. None of these. e. $55,200. Question 9 Not yet answered Marked out of 10.00 Not flaggedFlag question Question text Land containing a mine having an estimated 1,000,000 tons of economically extractable ore is purchased for $375,000. After the ore deposit is removed, the land will be worth $75,000. If 100,000 tons of ore are mined and sold during the first year, the depletion cost charged to expense for the year is: Select one: a. $35,000. b. None of these. c. $37,500. d. $30,000. e. $375,000. f. $300,000. Question 10 Not yet answered Marked out of 10.00 Not flaggedFlag question Question text Bren Company purchased a patent for $36,000. The patent is expected to have a finite life of 10 years even though its legal life is 17 years. The amortization for the first year is: Select one: a. $3,600. b. $2,118. c. $36,000. d. $1,800 e. $3,240. f. None of these. Question 11 Not yet answered Marked out of 6.00 Not flaggedFlag question Question text (T / F) Plant assets are sometimes wrecked in accidents or destroyed by fire, flood, storm, and other causes. If the asset was not insured, the loss is equal to the book value. If the asset was insured, only the amount of the loss exceeding the amount to be recovered from the insurance company would be considered a loss. Select one: True False I would like these question answered asap in 30 minutes please thank you