Question 14pts Where would we record the cost of clearing land and removing an unwanted building?

construction of new building

land

land improvements

purchase of an existing building

Flag this QuestionQuestion 2 On January 1, 2017 we purchased a truck for $60,000. The truck has a useful life of 5 years and a residual value of $5,000. The truck is depreciated using the double-declining balance method. What is the depreciation expense for 2017?

$24,000

$22,000

$12,000

$11,000

Flag this QuestionQuestion 3 A plant asset would be reported on the balance sheet at:

market value

historical cost

historical cost plus book value

historical cost minus book value

Flag this QuestionQuestion 4 On January 1, 2017 we purchased a truck for $60,000. The truck has a useful life of 5 years and a residual value of $5,000. The truck is depreciated using the straight-line method. What is the depreciation expense for 2017?

$12,000

$11,000

$5,500

$1,000

Flag this QuestionQuestion 5 A truck cost $60,000 when purchased and has a $55,000 balance in the accumulated depreciation account. If the truck is discarded we will record a:

debit to truck, $60,000 and debit to loss on disposal, $5,000

credit to accumulated depreciation, $60,000,credit to loss on disposal,$5,000

credit to truck, $60,000

loss on disposal, $60,000

Flag this QuestionQuestion 6 On July 1, 2017 we purchased a truck for $60,000. The truck has a useful life of 5 years and a residual value of $5,000. The truck is depreciated using the double-declining balance method. What is the balance in accumulated depreciation after the adjusting entry for 2018 (year 2)?

$35,200

$21,600

$31,200

$19,800

Flag this QuestionQuestion 7Which of the following isnotincluded in the cost of land improvements?

sprinkler systems

signs

fencing

delinquent property taxes

Flag this QuestionQuestion 8 On January 1, 2017 we purchased a truck for $55,000. The truck has a useful life of 5 years or 100,000 miles, and a residual value of $5,000. The actual mileage for the truck was 25,000 miles in 2017 and 30,000 miles in 2018. The truck is depreciated using the units of production method. What is the depreciation expense for 2017?

$22,000

$20,000

$15,000

$12,500

Flag this QuestionQuestion 9 A truck cost $60,000 when purchased and has a $60,000 balance in the accumulated depreciation account. If the truck is discarded we will record a:

debit to truck, $60,000

credit to accumulated depreciation, $60,000

debit to accumulated depreciation, $60,000

loss on disposal, $60,000

Flag this QuestionQuestion 10 A truck cost $60,000 when purchased and has a $50,000 balance in the accumulated depreciation account. If the truck is sold for $5,000 cash we will record:

gain on disposal of $5,000

loss on disposal,$5,000

no gain or loss

no entry is required