The balance in the Accumulated Depreciation account represents the amount to be deducted from the cost of the plant asset to arrive at its fair market value. cash fund to be used to replace plant assets. amount charged to expense in the current period. amount charged to expense since the acquisition of the plant asset. Click if you would like to Show Work for this question: Qen Show Work Equipment with a cost of $355000 has an estimated salvage value of $15000 and an estimated life of 4 years of 10000 hours. It is to be depreciated by the straight line method, what is the amount of depreciation for the first full year during which the equipment was used for 2000 hours? $85000 $68000 $86250 $88750. Click if you would like to show Work for this question: een Show Work On October 1, 2022, Carla Vista Co places a new asset into service. The cost of the asset is $85000 with an estimated 5 year ife and $22000 salvage value at the end of its useful What is the depreciation expense for 2022 if Carla Vista Co. uses the straight-line method of depreciation? $8500 $3150 $17000 $4250 The calculation of depreciation using the declining-balance method multiplies a declining percentage times a constant book value. multiplies a constant percentage times the previous year's depreciation expense. yields an increasing depreciation expense each period. ignores salvage value in determining the amount to which a constant rate is applied. Sales taxes collected by a retailer are reported as expenses. current liabilities. contingent liabilities. revenues. If bonds are issued at a premium, the stated interest rate is too low to attract investors. higher than the market rate of interest. lower than the market rate of interest. adjusted to a higher rate of interest. Over the term of the bonds, the balance in the Discount on Bonds Payable account will decrease. increase be unaffected until the bonds mature fluctuate up and down if the market is volatile. A measure of a company's solvency is the asset turnover ratio. times interest earned. acid-test ratio. current ratio. Cullumber Company purchased a building on January 2 by signing a long-term $4154000 mortgage with monthly payments of $38200. The mortgage carries an interest rate of 10 percent. The amount owed on the mortgage after the first payment will be $4150500 $4125800. $4129300. $4164000 Click if you would like to Show Work for this question Which of the following show the proper effect of a SUCK Spil au d BUN UTVIUCH Item Stock Split Stock Dividend Par value per share Decrease No change Total paid-in capital Increase Increase Total retained earnings Decrease Decrease Total par value (common) Decrease Increase Click if you would like to Show Work for this question: Open Show Work