Principles of Accounting I

Quiz 10

#8

On June 1, Aaron Company purchased equipment at a cost of $120,000 that has a depreciable cost of $90,000 and an estimated useful life of three years and 30,000 hours, which ends on December 31. Using straight-line depreciation, calculate depreciation expense for the final (partial) year of service.

a. $12,500

b. $17,500

c. $30,000

d. $40,000

#12

Which of the following is true?

a. Regardless of the depreciation method, the amount of total depreciation expense during the life of the asset will be the same.

b. If using the units-of-activity method, it is possible to depreciate more than the depreciable cost.

c. If using the straight-line method, the amount of depreciation expense during the first year is higher than that of the double-declining-balance.

d. If using the double-declining-balance method, the total amount of depreciation expense during the life of the asset will be the highest.

I missed both of these on a quiz. What is the correct answer and solution. Thank you