Question 1 Where would we record the cost of clearing land and removing an unwanted building?
construction of new building
land
land improvements
purchase of an existing building
Question 2 On January 1, 2017 we purchased a truck for $60,000. The truck has a useful life of 5 years and a residual value of $5,000. The truck is depreciated using the double-declining balance method. What is the depreciation expense for 2017?
$24,000
$22,000
$12,000
$11,000
Question 3 A plant asset would be reported on the balance sheet at:
market value
historical cost
historical cost plus book value
historical cost minus book value
Question 4 On January 1, 2017 we purchased a truck for $60,000. The truck has a useful life of 5 years and a residual value of $5,000. The truck is depreciated using the straight-line method. What is the depreciation expense for 2017?
$12,000
$11,000
$5,500
$1,000
Question 5 A truck cost $60,000 when purchased and has a $55,000 balance in the accumulated depreciation account. If the truck is discarded we will record a:
debit to truck, $60,000 and debit to loss on disposal, $5,000
credit to accumulated depreciation, $60,000,credit to loss on disposal,$5,000
credit to truck, $60,000
loss on disposal, $60,000
Question 6 On July 1, 2017 we purchased a truck for $60,000. The truck has a useful life of 5 years and a residual value of $5,000. The truck is depreciated using the double-declining balance method. What is the balance in accumulated depreciation after the adjusting entry for 2018 (year 2)?
$35,200
$21,600
$31,200
$19,800
Question 7 Which of the following is not included in the cost of land improvements?
sprinkler systems
signs
fencing
delinquent property taxes
Question 8 On January 1, 2017 we purchased a truck for $55,000. The truck has a useful life of 5 years or 100,000 miles, and a residual value of $5,000. The actual mileage for the truck was 25,000 miles in 2017 and 30,000 miles in 2018. The truck is depreciated using the units of production method. What is the depreciation expense for 2017?
$22,000
$20,000
$15,000
$12,500
Question 9 A truck cost $60,000 when purchased and has a $60,000 balance in the accumulated depreciation account. If the truck is discarded we will record a:
debit to truck, $60,000
credit to accumulated depreciation, $60,000
debit to accumulated depreciation, $60,000
loss on disposal, $60,000
Question 10 A truck cost $60,000 when purchased and has a $50,000 balance in the accumulated depreciation account. If the truck is sold for $5,000 cash we will record:
gain on disposal of $5,000
loss on disposal,$5,000
no gain or loss
no entry is required