When a Company sells equipment for $10.000 while its Book Value is $5.000 and Cost is $12,000. The sale of the equipment results a: Loss on Disposal of $7,000 to be recorded on the debit side Loss on Disposal of $2,000 to be recorded on the credit side Gain on Disposal of $5,000 to be recorded on the credit side Gain on Disposal of $7,000 to be recorded on the credit side In the Adjusting Entry of the Depreciation of a certain year, the amount included is the amount of: Depreciable Cost O Book Value O Depreciation Expense Accumulated Depreciation Equipment purchased on January 1, 2020. for $8.000 with a 3 years useful life and a salvage value of $500. Compute the equipment's Annual Depreciation Expense using the Straight-Line method. O $2,500 $1,500 $8,500 $7,500 O On October 1, 2019. Equipment has been purchased for $18,000 with a salve value of $4.000 and a useful life of 4 years. Compute the accumulated depreciation of the year 2019 under the Straight-Line method. O $4,375 $875 $2,475 $3,500 O The cost of Land Improvements includes: O Fences Lighting O Driveways O All the above A Company is constructing a building and incurs the following costs: building permits of $5,000: $15.000 of contractor fees, architect fees of $3,500 and landscaping of $2.000. The Cost of the Building is: $23,500 $21,500 $20,000 $25,500 On June 1, 2019. USB Company On October 1, 2019. Equipment has been purchased for $18.000 with a salve value of $4.000 and a useful life of 4 years. Compute the accumulated depreciation of the year 2019 under the Straight-Line method. O $4,375 $875 $2,475 $3,500 The cost of Land Improvements includes: O Fences Lighting Driveways All the above A Company is constructing a building and incurs the following costs: building permits of $5.000: $15.000 of contractor fees, architect fees of $3.500 and landscaping of $2.000. The Cost of the Building is: O $23,500 $21,500 $20,000 $25,500 On June 1, 2019. USB Company On June 1, 2019. USB Company purchased a delivery truck for $30,000 and no salvage value. The truck is expected to be driven for 150.000 miles in total. In 2019. the truck has been driven for 20.000 miles. The company uses the Units of Activity method of depreciation. What is the amount of the Depreciation Expense of the year 2019? O $2 $2,000 $4,000 O O None of the above On June 1, 2019. USB Company purchased a delivery truck for $30.000 and no salvage value. The truck is expected to be driven for 150,000 miles in total. In 2019, the truck has been driven for 20.000 miles. The company uses the Units of Activity method of depreciation What is the amount of the Depreciation Expense of the year 2019? O $2 $2,000 $4,000 O None of the above On January 1, 2018. ABC Company purchased equipment for $15.000 with a useful life of 4 years and a salvage value of $3.000. On January On January 1, 2018. ABC Company purchased equipment for $15.000 with a useful life of 4 years and a salvage value of $3,000. On January 1, 2020, the Company decided to extend the useful life of the equipment by two more years. The straight-line method is used. The Revised Annual Depreciation is: O $3,000 O $1,500 O $5,500 O $4,500 All are not included in the cost of plant assets except: O Annual Property Taxes O Accrued Property Taxes O Theft Insurance O Driving License A Company purchased a Land for $25.000 cash with an old building. The demolition cost of the building should be recorded as: Added to the Building cost 0 Added to the Land cost O Deducted from the Land cost O Demolition Expense When exchanging old equipment When exchanging old equipment with a new one, a Gain on Disposal amount results when: * Proceeds from Sale > Book Value of the old equipment Cost of New Equipment > Book Value of the old equipment Accumulated Depreciation > Book Value of the old equipment O None of the above Page 2 of 2 Back Submit Never submit passwords through Google Forms