Question 1

Find the annual double-declining-balance (200% method) rate of depreciation.
-9 years

Accepted Answer

A)    
B)    
C)    
D) 90% 
A)    
B)    
C)    
D) 90%

Question 2

Solve the problem.
-A drill press cost $5,000 and has an estimated life of 8 years and a scrap value of $300. Find the
Book value at the end of 6 years using the straight-line method. Round to nearest dollar.

Accepted Answer

A) $4,413 
B) $3,525 
C) $1,250 
D) $1,475 
A) $4,413 
B) $3,525 
C) $1,250 
D) $1,475

Question 3

Find the sum-of-the-years'-digits depreciation fraction for the first year.
-8 years

Accepted Answer

A)    
B)    
C)    
D)    
A)    
B)    
C)    
D)

Question 4

Use the MACRS depreciation rates table to solve the problem. Round to the nearest dollar.  
-Respiratory Care, Inc. purchased new packaging equipment (5-year property)at a cost of $8,150.
Find the book value at the end of 4 years.

Accepted Answer

A) $2,546 
B) $2,556 
C) $1,408 
D) $2,347 
A) $2,546 
B) $2,556 
C) $1,408 
D) $2,347

Question 5

Find the first year's depreciation using the MACRS method of depreciation and the MACRS depreciation rates table. Round to the nearest dollar.  
-Cost: $9,040
Period: 3-year

Accepted Answer

A) $1,339 
B) $3,013 
C) $1,808 
D) $1,736 
A) $1,339 
B) $3,013 
C) $1,808 
D) $1,736

Question 6

Provide an appropriate response.
-Explain in your own words why the accumulated depreciation plus the book value equals the total cost in each year of an asset's life.

Accepted Answer

The accumulated depreciation plus the bo

Question 7

Find the book value using the MACRS method of depreciation and the MACRS depreciation rates table. Round to the nearest dollar.  
-Cost: $400,000
Recovery Period: 10-year
After: First Year

Accepted Answer

A) $360,000 
B) $328,000 
C) $302,040 
D) $342,840 
A) $360,000 
B) $328,000 
C) $302,040 
D) $342,840

Question 8

Solve the problem.
-Tech Support Associates purchased a new computer network server and replaced all its terminals
For $29,600. Its estimated life is 4 years, at which time it will have a scrap value of $2,100. Use the
Straight-line method of depreciation to find the annual amount of depreciation. Find the book
Value at the end of 3 years.

Accepted Answer

A) $7,400, $7,400 
B) $6,875, $20,625 
C) $6,875, $8,975 
D) $7,400, $22,200 
A) $7,400, $7,400 
B) $6,875, $20,625 
C) $6,875, $8,975 
D) $7,400, $22,200

Question 9

Find the annual amount of depreciation using the straight-line method. Round to the nearest dollar.
-Cost: $4,100
Estimated life: 6 years
Estimated scrap value: $600

Accepted Answer

A) $683 
B) $583 
C) $600 
D) $100 
A) $683 
B) $583 
C) $600 
D) $100

Question 10

Use the MACRS depreciation rates table to solve the problem. Round to the nearest dollar.  
-Marcus McGuire purchased a rental duplex (27.5-year property)for $101,000. Find its book value
At the end of 5 years.

Accepted Answer

A) $71,169 
B) $79,118 
C) $82,791 
D) $86,463 
A) $71,169 
B) $79,118 
C) $82,791 
D) $86,463

Question 11

Provide an appropriate response.
-Describe three features that are unique to the Modified ACRS method of depreciation.

Accepted Answer

The Modified Accelerated Cost Recovery S

Question 12

Find the book value to the nearest dollar.
-Cost $7,090, life 6 years, scrap value $780 at the end of 3 years using double-declining balance
Method

Accepted Answer

A) $2,101 
B) $4,103 
C) $2,650 
D) $4,432 
A) $2,101 
B) $4,103 
C) $2,650 
D) $4,432

Question 13

Find the book value using the MACRS method of depreciation and the MACRS depreciation rates table. Round to the nearest dollar.  
-Cost: $120,500
Recovery Period: 27.5-year
After: Third Year

Accepted Answer

A) $99,237 
B) $108,450 
C) $107,538 
D) $103,156 
A) $99,237 
B) $108,450 
C) $107,538 
D) $103,156

Question 14

Find the first year's depreciation using the MACRS method of depreciation and the MACRS depreciation rates table. Round to the nearest dollar.  
-Cost: $34,800
Period: 5-year

Accepted Answer

A) $11,599 
B) $6,960 
C) $11,136 
D) $4,973 
A) $11,599 
B) $6,960 
C) $11,136 
D) $4,973

Question 15

Find the first year's depreciation, using the double-declining-balance method. Round to the nearest dollar.
-Cost: $3,400
Est. life: 6 years
Est. scrap: $800

Accepted Answer

A) $433 
B) $867 
C) $567 
D) $1,133 
A) $433 
B) $867 
C) $567 
D) $1,133

Question 16

Find the book value to the nearest dollar.
-Cost $91,900, life 11 years, scrap value $8,271 at the end of 1 year, sum-of-the-years'-digits
Method

Accepted Answer

A) $84,297 
B) $75,191 
C) $83,545 
D) $77,962 
A) $84,297 
B) $75,191 
C) $83,545 
D) $77,962

Question 17

Find the first year's depreciation, using the double-declining-balance method. Round to the nearest dollar.
-Cost: $54,000
Est. life: 20 years
Est. scrap: $5,000

Accepted Answer

A) $2,700 
B) $2,450 
C) $4,900 
D) $5,400 
A) $2,700 
B) $2,450 
C) $4,900 
D) $5,400

Question 18

Find the book value after the given number of years, using the straight-line method. Round your answer to the nearest dollar.
-

Accepted Answer

A) $3,800 
B) $700 
C) $3,750 
D) $3,100 
A) $3,800 
B) $700 
C) $3,750 
D) $3,100

Question 19

Use the MACRS depreciation rates table to find the recovery percent (rate), given the recovery year and recovery period.  
-Recovery year: 4
Recovery period: 3-year

Accepted Answer

A) 11.52% 
B) 19.2% 
C) 14.81% 
D) 7.41% 
A) 11.52% 
B) 19.2% 
C) 14.81% 
D) 7.41%

Question 20

Solve the problem.
-A drilling rig cost $20,600 and has an estimated life of 8 years and a scrap value of $1,030. Find the
Book value at the end of 5 years using the straight-line method. Round to nearest dollar.

Accepted Answer

A) $7,725 
B) $8,369 
C) $18,154 
D) $12,231 
A) $7,725 
B) $8,369 
C) $18,154 
D) $12,231

Find the annual double-declining-balance (200% method) rate of depreciation. -9 years

Solve the problem. -A drill press cost $5,000 and has an estimated life of 8 years and a scrap value of $300. Find the Book value at the end of 6 years using the straight-line method. Round to nearest dollar.

Find the sum-of-the-years'-digits depreciation fraction for the first year. -8 years

Use the MACRS depreciation rates table to solve the problem. Round to the nearest dollar. -Respiratory Care, Inc. purchased new packaging equipment (5-year property)at a cost of $8,150. Find the book value at the end of 4 years.

Find the first year's depreciation using the MACRS method of depreciation and the MACRS depreciation rates table. Round to the nearest dollar. -Cost: $9,040 Period: 3-year

Provide an appropriate response. -Explain in your own words why the accumulated depreciation plus the book value equals the total cost in each year of an asset's life.

Find the book value using the MACRS method of depreciation and the MACRS depreciation rates table. Round to the nearest dollar. -Cost: $400,000 Recovery Period: 10-year After: First Year

Find the annual amount of depreciation using the straight-line method. Round to the nearest dollar. -Cost: $4,100 Estimated life: 6 years Estimated scrap value: $600

Use the MACRS depreciation rates table to solve the problem. Round to the nearest dollar. -Marcus McGuire purchased a rental duplex (27.5-year property)for $101,000. Find its book value At the end of 5 years.

Provide an appropriate response. -Describe three features that are unique to the Modified ACRS method of depreciation.

Find the book value to the nearest dollar. -Cost $7,090, life 6 years, scrap value $780 at the end of 3 years using double-declining balance Method

Find the book value using the MACRS method of depreciation and the MACRS depreciation rates table. Round to the nearest dollar. -Cost: $120,500 Recovery Period: 27.5-year After: Third Year

Find the first year's depreciation using the MACRS method of depreciation and the MACRS depreciation rates table. Round to the nearest dollar. -Cost: $34,800 Period: 5-year

Find the first year's depreciation, using the double-declining-balance method. Round to the nearest dollar. -Cost: $3,400 Est. life: 6 years Est. scrap: $800

Find the book value to the nearest dollar. -Cost $91,900, life 11 years, scrap value $8,271 at the end of 1 year, sum-of-the-years'-digits Method

Find the first year's depreciation, using the double-declining-balance method. Round to the nearest dollar. -Cost: $54,000 Est. life: 20 years Est. scrap: $5,000

Find the book value after the given number of years, using the straight-line method. Round your answer to the nearest dollar. -

Use the MACRS depreciation rates table to find the recovery percent (rate), given the recovery year and recovery period. -Recovery year: 4 Recovery period: 3-year

Solve the problem. -A drilling rig cost $20,600 and has an estimated life of 8 years and a scrap value of $1,030. Find the Book value at the end of 5 years using the straight-line method. Round to nearest dollar.

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Exam 14: Depreciation