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Multiple Choice 1 A method that excludes residual value from the base for the depreciation calculation is a Straight-line b Sum-of-the-years’-digits c Double-declining-balance d Productive

(Multiple Choice) 1. A method that excludes residual value from the base for the depreciation calculation is a. Straight-line b. Sum-of-the-years’-digits c. Double-declining-balance d. Productive-output Items 2 through 4 are based on the following information: Vorst Corporation’s schedule of depreciable assets at December 31, 2007 was as follows:  Vorst takes a full year’s depreciation expense in the year of an asset’s acquisition, and no depreciation expense in the year of an asset’s disposition. The estimated useful life of each depreciable asset is five years. 2. Vorst depreciates asset A on the double-declining balance method. How much depreciation expense should Vorst record in 2008 for asset A? a. $32,000 b. $25,600 c. $14,400 d. $6,400 3. Using the same depreciation method as used in 2005, 2006, and 2007, how much depreciation expense should Vorst record in 2008 for asset B? a. $6,000 b. $9,000 c. $11,000 d. $12,000 4. Vorst depreciates asset C by the straight-line method. On June 30, 2008, Vorst sold asset C for $28,000 cash. How much gain (loss) should Vorst record in 2008 on the disposal of asset C? a. $2,800 b. ($2,800) c. ($5,600) d. ($8,400) 5. The composite depreciation method a. Is applied to a group of homogeneous assets b. Is an accelerated method of depreciation c. Does not recognize gain or loss on the retirement of single assets in the group d. Excludes residual value from the base of the depreciation calcul

May 21 2020 View more View Less

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