Fundamental Accounting Principles Volume 2 17th Edition By Kermit D. Larson test bank

       B) 7 years.
       C) 9 years.
       D) 6 years.
       E) 13 years.
      






208)       When originally purchased, a vehicle costing $25,020 had an estimated useful life of 8 years and an estimated salvage value of $2,700. After 4 years of straight-line depreciation, the asset's total estimated useful life was revised from 8 years to 6 years and there was no change in the estimated salvage value. The depreciation expense in year 5 equals:



      
       A) $5,580.00.     
       B) $11,160.00.
       C) $2,790.00.
       D) $5,748.00.
       E) $2,958.00.
      






209)       A company used straight-line depreciation for an item of equipment that cost $21,000, had a salvage value of $6,000 and a six-year useful life. After depreciating the asset for three complete years, the salvage value was reduced to $2,100 but its total useful life remained the same. Determine the amount of depreciation to be charged against the equipment during each of the remaining years of its useful life:



      
       A) $3,800.   
       B) $8,300.
       C) $5,400.
       D) $1,500.
       E) $6,000.
      






210)       Beckman Enterprises purchased a depreciable asset on October 1, Year 1 at a cost of $156,000. The asset is expected to have a salvage value of $16,400 at the end of its five-year useful life. If the asset is depreciated on the double-declining-balance method, the asset's  book value on December 31, Year 2 will be:



      
       A) $84,240  
       B) $33,696
       C) $45,684
       D) $30,456
       E) $140,400
      






211)       Peavey Enterprises purchased a depreciable asset for $23,500 on April 1, Year 1. The asset will be depreciated using the straight-line method over its four-year useful life. Assuming the asset's salvage value is $2,300, what will be the amount of  accumulated depreciation on this asset on December 31, Year 3?



      
       A) $14,575  
       B) $4,417
       C) $17,667
       D) $5,300
       E) $21,200
      






212)       Peavey Enterprises purchased a depreciable asset for $29,500 on April 1, Year 1. The asset will be depreciated using the straight-line method over its four-year useful life. Assuming the asset's salvage value is $3,500, Peavey Enterprises should recognize  depreciation expense in Year 2 in the amount of:



      
       A) $5,416.67      
       B) $26,000.00
       C) $24,916.67
       D) $7,375.00
       E) $6,500.00
      






213)       The following information is available on a depreciable asset:
 



Purchase date
January 1, Year 1

Purchase price
$68,000

Salvage value
$10,000

Useful life
10 years

Depreciation method
straight-line

 
 The asset's book value is $56,400 on January 1, Year 3. On that date, management determines that the asset's salvage value should be $5,000 rather than the original estimate of $10,000. Based on this information, the amount of  depreciation expense the company should recognize during Year 3 would be: