Question 1

What is the amount of double declining

Balance depreciation, for year 4, if the cost of an asset is

$75,000, the useful life is 5 years, and the salvage

value is $4,000.

Question 2

What is the amount of double declining

balance

depreciation, for year 3, if the cost of an asset is

$75,000, the useful life is 5 years, and the salvage

value is $4,000.

Question 3

What type of business entity is formed when the

owners desire to have thousands of owners, raise

capital through the sale of stock, has liability

protection for its owner, and does not make a

special election?

Question 4

What is the amount of doubledeclining

balance

depreciation, for year 1, if the cost of an asset is

$75,000, the useful life is 5 years, and the salvage

value is $4,000.

Question 5

ABC Company had the following information

regarding their accounts. Increase in accounts

receivable of $10,200 decrease in supplies of

$3,100 gains on sale of equipment of $7,400

losses on sales of equipment of $630 net income of

$63,150 increase in accounts payable of $3,500,

and depreciation of $12,340. In addition, expected

capital expenditures are $12,000 and dividends are

$7,500. What is the free cash flow?

Question 6

What type of business entity makes a special

election, and is generally created for the public

good?

Question 7

What type of business entity has only one owner,

and is not distinguishable between the owner and

the business entity?

Question 8

What is the amount of straightline

depreciation for

year 2 if the useful life of an asset is 5 years, the

purchase price is $50,000, and the salvage value is

$2,000?

.

Question 9

Assume an asset with an original cost of $40,000,

$6,000 salvage value, is depreciated using straightline

depreciation over 5 years. After year 2, the

salvage value was modified to a $2,000 salvage

value, with 5 years of depreciation remaining. What

is the new yearly depreciation?