On January 1, 2013, ABC Company purchased a van for $35,000. The van was estimated to have a 5-year useful life or 100,000 miles. Salvage value was estimated at $5,000.

Using units-of-production, what is the depreciation expense per mile?

Select one:

a. $0.30

b. $0.35

c. $6000

d. $7000

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At the end of the current year, XYZ Co. recorded depreciation expense of $25,000 on its equipment. The effect of this entry on the company's balance sheet is to:

Select one:

a. Decrease Assets and Increase Liabilities

b. Decrease Stockholders' Equity and Increase Liabilities.

c. Decrease Assets and Increase Stockholders' Equity.

d. Decrease Assets and Decrease Stockholders' Equity.

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Which of the following is not a depreciable asset?

Select one:

a. Computer

b. Land

c. Vehicle

d. Office Furniture

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Which of the following terms is used to identify the expense recognition for intangible assets?

Select one:

a. Amortization

b. Depletion

c. Depreciation

d. Allocation