A company sold a machine that originally cost

Answer The 8 Accounting Multiple Choice Questions

1- A machine originally had an estimated useful life of 13 years, but after 6 complete years it was decided that the original estimate of useful life should have been 15 years. At that point the remaining cost to be depreciated should be allocated over the remaining:

A-15 years

B- 9 years

C- 7 years

D- 19 years

E- 2 years

2- When originally purchased, a vehicle had an estimated useful life of eight years. The vehicle cost $24,240 and its estimated salvage value is $2,000. After four years of straight-line depreciation, the asset's total estimated useful life was revised from eight years to six years and there was no change in the estimated salvage value. The depreciation expense in year 5 equals:

A- $6,060.00

B- $5,560.00

C- $11,120.00

D- $3,030.00

E $2,780.00

3- A company's annual accounting period ends on September 30. During the current year, a depreciable asset that cost $19,000 was purchased on January 1. The asset has a $2,600 estimated salvage value. The company uses straight-line depreciation and expects the asset to have a four-year life. What is the total depreciation expense for the current year?

A- $3,450

B- $4,100

C- $1,025

D- $3,075

E- $4,750

4- A company purchased property for $100,000. The property included a building, a parking lot and land. The building was appraised at $64,500; the land at $47,500 and the parking lot at $18,500. The value of the land that will be included in the accounting record is:

A- $0

B- $100,000

C- $36,398

D- $47,500

E- $44,500

5- A company sold a machine that originally cost $106,000 for $62,000 cash. The accumulated depreciation on the machine was $44,000. The company should recognize a:

A- $0 gain or loss

B- $18,000 loss

C- $44,000 loss

D- $62,000 gain

E- $18,000 gain

6- A company had a bulldozer destroyed by fire. The bulldozer originally cost $135,000. The accumulated depreciation on it was $65,000. The proceeds from the insurance company were $95,000. The company should recognize:
rev: 11_19_2013_QC_40459

A- A gain of $95,000.

B- A loss of $70,000.

C- A gain of $70,000.

D- A loss of $25,000.

E- A gain of $25,000.

7- A company purchased a tract of land for its natural resources at a cost of $1,410,000. It expects to mine 1,910,000 tons of ore from this land. The salvage value of the land is expected to be $160,000. The depletion expense per ton of ore is:

A- $0.738

B- $0.822

C- $8.813

D- $0.654

E- $11.938

8- Smitty Museum purchased the copyright to a piece of artwork for $952,000. Smitty plans to reproduce 1.8 million posters of the artwork over a period of 12 years. Calculate the amortization for the year assuming the Museum plans to reproduce and sell 136,000 posters the first year.

A- $71,929

B- $75,556

C- $79,333

D- $81,333

E- $0, copyrights are not amortized.

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