Question 14 (2 points) A truck was purchased for $35,500. It has a useful life of 5 years or 140,000 miles, and an estimated residual value of $7,500. Assuming the truck was driven 31,000 miles during the first year, what is depreciation expense under the units of production method? $5,600 $7,861 $1,240 $6,200 Question 15 (2 points) Which method of depreciation does NOT consider residual value in computing the normal periodic depreciation? Straight-line Units-of-production Declining balance All the above use residual value Question 16 (2 points) A machine with a useful life of 10 years and a residual value of $2,000 was purchased for $18,000. What is depreciation expense for the first year under the double declining balance method? $1,800 $1,600 $3,600 $3,200 Question 17 (2 points) Which depreciation method displays a variable depreciation expense pattern, based on usage rather than the passage of time? straight-line units-of-production declining balance randomized variation using sales growth as a base A fully depreciated asset must be __- Removed from the books kept on the books until sold Disclosed only in the notes to the financial statements Recognized on the income statement as a loss Question 19 (2 points) A gain is recorded on the sale of fixed assets when... The asset is sold for a price less than its book value The assets is sold for more than its book value. The Vikings win two games in a row (obviously a fall test) Accumulated depreciation is less than the cash received Question 20 (2 points) Intangible assets are used in operations but Cannot be long-lived Lack physical substance Question 21 (2 points) Goodwill is equal to the excess of purchase price of an acquired company over the total__ Book value of its assets excluding liabilities O Book value of its net assets including liabilities Market value of its assets Market value of its net assets Question 22 (2 points) A machine with a cost of $80,000 has an estimated residual value of $5,000 and an estimated life of 5 years or 15,000 hours. It is to be depreciated by the units-of- production method. What is the amount of depreciation for the second full year, during which the machine was used 5,000 hours? $5,000 $25,000 $15,000 *26667