1. A company had a bulldozer destroyed by fire. The bulldozer originally cost $128,000. The accumulated depreciation on it was $61,500. The proceeds from the insurance company were $91,500. The company should recognize:
A) A gain of $66,500.
B) A gain of $25,000.
C) A loss of $66,500.
D) A loss of $25,000.
E) A gain of $91,500.
2. A company's annual accounting period ends on September 30. During the current year, a depreciable asset that cost $15,500 was purchased on January 1. The asset has a $1,900 estimated salvage value. The company uses straight-line depreciation and expects the asset to have a three-year life. What is the total depreciation expense for the current year?
A) $4,533
B) $3,900
C) $1,133
D) $5,167
E) $3,400
3. A company sold equipment for $42,000. Total accumulated depreciation at the time of the sale was $16,000 and a loss of $6,000 was recognized on the sale. What was the original cost of the asset?
A) $58,000
B) $64,000
C) $26,000
D) $36,000
E) $48,000
4. A company purchased a mineral deposit for $840,000. It expects this property to produce 1,240,000 tons of ore and to have a salvage value of $54,000. In the current year, the company mined and sold 94,000 tons of ore. Its depletion expense for the current period is equal to:
A) $67,771
B) $59,584
C) $138,762
D) $1,462,222
E) $63,677
5. A company purchased a POS cash register on January 1 for $5,000. This register has a useful life of 10 years and a salvage value of $360. What would be the depreciation expense for thesecond-year of its useful life using the double-declining-balance method?
A) $800
B) $464
C) $928
D) $1,000
E) $720
6. Smitty Museum purchased the copyright to a piece of artwork for $882,000. 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 122,000 posters the first year.
A) $73,500
B) $67,778
C) $0, copyrights are not amortized.
D) $75,500
E) $59,780
7. A company purchased property for $100,000. The property included a building, a parking lot and land. The building was appraised at $58,000; the land at $41,000 and the parking lot at $17,200. The value of the land that will be included in the accounting record is:
A) $0
B) $38,000
C) $35,284
D) $41,000
E) $100,000
8. Cardco Inc. has an annual accounting period that ends on December 31. During the current year a depreciable asset that cost $46,500 was purchased on September 2. The asset has a $4,900 estimated salvage value. The company uses straight-line depreciation and expects the asset to have a five-year life. What is the total depreciation expense for the current year?
A) $3,466.67
B) $2,773.33
C) $2,080.00
D) $8,320.00
E) $3,100.00