Fundamental Accounting Principles Volume 2 17th Edition By Kermit D. Larson test bank
Student name:__________
1) On January 1 of this year, SportsWorld purchased a new cash register for $5,400. This register has a useful life of 10 years and a residual value of $400. Using the double-declining-balance method, how much depreciation expense should SportsWorld recognize for next year?
A) $500
B) $540
C) $1,000
D) $864
E) $1,080
2) SportsWorld purchased equipment costing $10,000. The equipment has a residual value of $1,000, and an estimated useful life of 5 years or 36,000 shoes. Actual units produced during the year were 7,000 units. Calculate the annual depreciation using the straight line method.
A) $1,800
B) $4,000
C) $1,450
D) $2,000
E) $1,750
3) On October 1 of this year, SportsWorld purchased a delivery van for $23,000 with a residual value of $3,000. The van has an estimated useful life of 5 years. Using straight-line depreciation and the half-year rule, how much depreciation expense should SportsWorld recognize on December 31 of this year?
A) $4,600
B) $1,333
C) $1,465
D) $2,000
E) $4,000
4) SportsWorld uses the straight-line depreciation for a piece of equipment that cost $12,000. The asset had a trade-in value of $2,000, and a five-year service life. At the end of the third year, the trade-in value was revised to $1,200 and the useful life increased to a total of 6 years. Calculate the amount of depreciation expense for each of the remaining years of the asset's useful life.
A) $1,000
B) $1,467
C) $1,800
D) $1,600
E) $2,160
5) JoyCo acquired equipment on April 1, 2022, at a cost of $90,000 and with an estimated useful life of 10 years. The machine has a residual value of $10,000. JoyCo uses the double-declining-balance method of depreciation. How much depreciation should be recorded by JoyCo for the year ended December 31, 2022?
A) $8,000
B) $9,000
C) $10,000
D) $13,500
E) $12,000
6) SportsWorld bought a new display case for $12,000 and was given a trade-in of $2,000 on an old display case. The old case had an original cost of $7,000 and an accumulated depreciation of $4,000 to the date of trade-in. SportsWorld should record the new display case at:
A) $10,000
B) $10,500
C) $11,500
D) $11,700
E) $12,000
7) At the end of the year, SportsWorld completed an asset impairment test and noted that a piece of equipment, with a book value of 12,000, has a recoverable value of $2,000. Calculate the amount of impairment loss on the equipment.
A) $2,000
B) $2,160
C) $14,800
D) $12,800
E) $10,000
1) On January 1 of this year, SportsWorld purchased a new cash register for $5,400. This register has a useful life of 10 years and a residual value of $400. Using the double-declining-balance method, how much depreciation expense should SportsWorld recognize for next year?
A) $500
B) $540
C) $1,000
D) $864
E) $1,080
2) SportsWorld purchased equipment costing $10,000. The equipment has a residual value of $1,000, and an estimated useful life of 5 years or 36,000 shoes. Actual units produced during the year were 7,000 units. Calculate the annual depreciation using the straight line method.
A) $1,800
B) $4,000
C) $1,450
D) $2,000
E) $1,750
3) On October 1 of this year, SportsWorld purchased a delivery van for $23,000 with a residual value of $3,000. The van has an estimated useful life of 5 years. Using straight-line depreciation and the half-year rule, how much depreciation expense should SportsWorld recognize on December 31 of this year?
A) $4,600
B) $1,333
C) $1,465
D) $2,000
E) $4,000
4) SportsWorld uses the straight-line depreciation for a piece of equipment that cost $12,000. The asset had a trade-in value of $2,000, and a five-year service life. At the end of the third year, the trade-in value was revised to $1,200 and the useful life increased to a total of 6 years. Calculate the amount of depreciation expense for each of the remaining years of the asset's useful life.
A) $1,000
B) $1,467
C) $1,800
D) $1,600
E) $2,160
5) JoyCo acquired equipment on April 1, 2022, at a cost of $90,000 and with an estimated useful life of 10 years. The machine has a residual value of $10,000. JoyCo uses the double-declining-balance method of depreciation. How much depreciation should be recorded by JoyCo for the year ended December 31, 2022?
A) $8,000
B) $9,000
C) $10,000
D) $13,500
E) $12,000
6) SportsWorld bought a new display case for $12,000 and was given a trade-in of $2,000 on an old display case. The old case had an original cost of $7,000 and an accumulated depreciation of $4,000 to the date of trade-in. SportsWorld should record the new display case at:
A) $10,000
B) $10,500
C) $11,500
D) $11,700
E) $12,000
7) At the end of the year, SportsWorld completed an asset impairment test and noted that a piece of equipment, with a book value of 12,000, has a recoverable value of $2,000. Calculate the amount of impairment loss on the equipment.
A) $2,000
B) $2,160
C) $14,800
D) $12,800
E) $10,000