Question 1

Find the annual double-declining-balance (200% method) rate of depreciation.
-30 years

Accepted Answer

A) 300% 
B)    
C)    
D)    
A) 300% 
B)    
C)    
D)

Question 2

Find the first year's depreciation using the MACRS method of depreciation and the MACRS depreciation rates table. Round to the nearest dollar.  
-Cost: $8,760
Period: 5-year

Accepted Answer

A) $1,252 
B) $1,752 
C) $2,920 
D) $3,894 
A) $1,252 
B) $1,752 
C) $2,920 
D) $3,894

Question 3

Solve the problem.
-The Windmill Harbour Marina purchased a boat hauling rig for $543,000. Its estimated life is 16
Years, at which time it will have a scrap value of $3,200. Use the straight-line method of
Depreciation to find the annual amount of depreciation. Find the book value at the end of 9 years.

Accepted Answer

A) $33,938, $846,642 
B) $33,938, $305,442 
C) $33,738, $239,358 
D) $33,738, $303,642 
A) $33,938, $846,642 
B) $33,938, $305,442 
C) $33,738, $239,358 
D) $33,738, $303,642

Question 4

Find the annual straight-line rate of depreciation for the estimated life.
-6 years

Accepted Answer

A) 6% 
B) 8.3% 
C) 1.7% 
D) 16.7% 
A) 6% 
B) 8.3% 
C) 1.7% 
D) 16.7%

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: $296,500
Period: 7-year

Accepted Answer

A) $42,370 
B) $59,300 
C) $72,613 
D) $29,650 
A) $42,370 
B) $59,300 
C) $72,613 
D) $29,650

Question 6

Find the first year's depreciation using the MACRS method of depreciation and the MACRS depreciation rates table. Round to the nearest dollar.  
-Cost: $425,000
Period: 10-year

Accepted Answer

A) $104,083 
B) $60,733 
C) $42,500 
D) $76,500 
A) $104,083 
B) $60,733 
C) $42,500 
D) $76,500

Question 7

Provide an appropriate response.
-Compare the three depreciation methods: straight-line, double-declining-balance, and sum-of-the-years'-digits.

Accepted Answer

The three depreciation methods, straight

Question 8

Use the sum-of-the-years'-digits method of depreciation. Round to the nearest dollar.
-Find the book value at the end of the second year for an air filtration system which cost $6,300, has
A life of 5 years, and an estimated scrap value of $630.

Accepted Answer

A) $4,032 
B) $2,520 
C) $2,898 
D) $3,402 
A) $4,032 
B) $2,520 
C) $2,898 
D) $3,402

Question 9

Find the book value to the nearest dollar.
-Cost $8,080, life 5 years, scrap value $808 at the end of 2 years using double-declining balance
Method

Accepted Answer

A) $3,426 
B) $5,171 
C) $5,462 
D) $2,909 
A) $3,426 
B) $5,171 
C) $5,462 
D) $2,909

Question 10

Find the annual amount of depreciation using the units-of-production method. Round to the nearest dollar.
-Depreciation per unit: $0.36
Units of production: 23,000

Accepted Answer

A) $639 
B) $8,280 
C) $828 
D) $6,389 
A) $639 
B) $8,280 
C) $828 
D) $6,389

Question 11

Use the double-declining-balance method of depreciation. Round to the nearest dollar.
-Metal Fabricators buys a milling machine for $3,500 and estimates its useful life at 4 years and its
Salvage value at $350. What is the amount of depreciation each year?

Accepted Answer

A) $1,750, $875, $438, $88 
B) $1,575, $788, $788, $438 
C) $788, $788, $788, $788 
D) $875, $875, $875, $875 
A) $1,750, $875, $438, $88 
B) $1,575, $788, $788, $438 
C) $788, $788, $788, $788 
D) $875, $875, $875, $875

Question 12

Find the depreciation per unit. Round to the nearest cent.
-Cost: $19,000
Salvage: $1,900
Est. Life: 220,000 miles

Accepted Answer

A) $0.90 
B) $0.09 
C) $0.80 
D) $0.08 
A) $0.90 
B) $0.09 
C) $0.80 
D) $0.08

Question 13

Find the book value to the nearest dollar.
-Cost $8,100, life 4 years, scrap value $405 at the end of 3 years, sum-of-the-years'-digits method

Accepted Answer

A) $1,175 
B) $4,050 
C) $2,025 
D) $2,329 
A) $1,175 
B) $4,050 
C) $2,025 
D) $2,329

Question 14

Solve the problem. Round to the nearest dollar.
-A construction company purchased a piece of equipment for $1,610. The expected life is 9,000
Hours, after which it will have a salvage value of $290. Find the amount of depreciation for the first
Year if the piece of equipment was used for 1,700 hours. Use the units-of-production method of
Depreciation.

Accepted Answer

A) $255 
B) $149 
C) $304 
D) $177 
A) $255 
B) $149 
C) $304 
D) $177

Question 15

Find the book value using the MACRS method of depreciation and the MACRS depreciation rates table. Round to the nearest dollar.  
-Cost: $9,500
Recovery Period: 5-year
After: First Year

Accepted Answer

A) $6,334 
B) $5,277 
C) $8,142 
D) $7,600 
A) $6,334 
B) $5,277 
C) $8,142 
D) $7,600

Question 16

Find the book value after the given number of years, using the straight-line method. Round your answer to the nearest dollar.
-Find the book value at the end of 10 years.
Cost: $67,500
Estimated life: 12 years
Estimated scrap value: $4,050

Accepted Answer

A) $62,213 
B) $11,250 
C) $52,875 
D) $14,625 
A) $62,213 
B) $11,250 
C) $52,875 
D) $14,625

Question 17

Find the depreciation per unit. Round to the nearest cent.
-Cost: $7,000
Salvage: $350
Est. Life: 200,000 copies

Accepted Answer

A) $0.30 
B) $0.03 
C) $0.40 
D) $0.04 
A) $0.30 
B) $0.03 
C) $0.40 
D) $0.04

Question 18

Find the book value using the MACRS method of depreciation and the MACRS depreciation rates table. Round to the nearest dollar.  
-Cost: $35,000
Recovery Period: 5-year
After: First Year

Accepted Answer

A) $23,335 
B) $23,800 
C) $29,999 
D) $28,000 
A) $23,335 
B) $23,800 
C) $29,999 
D) $28,000

Question 19

Find the book value using the MACRS method of depreciation and the MACRS depreciation rates table. Round to the nearest dollar.  
-Cost: $9,580
Recovery Period: 3-year
After: First Year

Accepted Answer

A) $8,161 
B) $6,387 
C) $7,664 
D) $7,741 
A) $8,161 
B) $6,387 
C) $7,664 
D) $7,741

Question 20

Solve the problem. Round to the nearest dollar.
-SLM Instruments bought a metal punch machine at a cost of $8,700. The expected life is 5,000 hours
Of production with a salvage value of $870. Find the book value at the end of the third year. Use the
Units-of-production method of depreciation given the following production schedule.
Year 1 -1,150 hours
Year 2- 1,580 hours
Year 3- 1,280 hours

Accepted Answer

A) $1,534 
B) $1,723 
C) $2,404 
D) $6,296 
A) $1,534 
B) $1,723 
C) $2,404 
D) $6,296

Find the annual double-declining-balance (200% method) rate of depreciation. -30 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: $8,760 Period: 5-year

Find the annual straight-line rate of depreciation for the estimated life. -6 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: $296,500 Period: 7-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: $425,000 Period: 10-year

Provide an appropriate response. -Compare the three depreciation methods: straight-line, double-declining-balance, and sum-of-the-years'-digits.

Use the sum-of-the-years'-digits method of depreciation. Round to the nearest dollar. -Find the book value at the end of the second year for an air filtration system which cost $6,300, has A life of 5 years, and an estimated scrap value of $630.

Find the book value to the nearest dollar. -Cost $8,080, life 5 years, scrap value $808 at the end of 2 years using double-declining balance Method

Find the annual amount of depreciation using the units-of-production method. Round to the nearest dollar. -Depreciation per unit: $0.36 Units of production: 23,000

Use the double-declining-balance method of depreciation. Round to the nearest dollar. -Metal Fabricators buys a milling machine for $3,500 and estimates its useful life at 4 years and its Salvage value at $350. What is the amount of depreciation each year?

Find the depreciation per unit. Round to the nearest cent. -Cost: $19,000 Salvage: $1,900 Est. Life: 220,000 miles

Find the book value to the nearest dollar. -Cost $8,100, life 4 years, scrap value $405 at the end of 3 years, sum-of-the-years'-digits method

Find the book value using the MACRS method of depreciation and the MACRS depreciation rates table. Round to the nearest dollar. -Cost: $9,500 Recovery Period: 5-year After: First Year

Find the book value after the given number of years, using the straight-line method. Round your answer to the nearest dollar. -Find the book value at the end of 10 years. Cost: $67,500 Estimated life: 12 years Estimated scrap value: $4,050

Find the depreciation per unit. Round to the nearest cent. -Cost: $7,000 Salvage: $350 Est. Life: 200,000 copies

Find the book value using the MACRS method of depreciation and the MACRS depreciation rates table. Round to the nearest dollar. -Cost: $35,000 Recovery Period: 5-year After: First Year

Find the book value using the MACRS method of depreciation and the MACRS depreciation rates table. Round to the nearest dollar. -Cost: $9,580 Recovery Period: 3-year After: First Year

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Exam 14: Depreciation