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# Which amortization method uses the current book value in determining amortization? A) St

Which amortization method uses the current book value in determining amortization?

A) Straight-line

B) MACRS

C) Units-of-production

D) Double-declining balance.

12) The amortization method that allocates amortization of a plant asset based on the number of units produced is the:

A) straight-line method.

B) units-of-production method.

C) modified accelerated cost recovery method.

D) double-declining-balance method.

13) Josh Kindel purchased equipment for \$60,000 plus GST at 5% on January 1, 2015. Its residual value is \$4,000 with a useful life of 8 years. The amount of amortization for 2015 under the double-declining-balance method is

A) \$14,000.

B) \$ 7,500.

C) \$ 7,000.

D) \$15,000.

14) Josh Kindel purchased equipment for \$60,000 plus GST at 5% on January 1, 2015. Its residual value is \$4,000 with a useful life of 8 years. The amount of amortization for 2016 under the double-declining-balance method is

A) \$22,500.

B) \$11,250.

C) \$10,500.

D) \$21,000.

15) Lacy purchased equipment for \$77,000 plus HST at 13% on January 1. Its residual value is \$5,000 with a useful life of 9 years. The amount of amortization in the first year under the straight-line method is

A) \$8,556.

B) \$8,000.

C) \$16,940.

D) \$15,840.

16) Jason Moore purchased computer equipment for \$2,800 plus HST at 13% on January 1, 2014. It has a residual value of \$400 with a useful life of 4 years. After the appropriate adjusting entries have been made, the balance in Accumulated Amortization account for this asset on January 1, 2016, under the straight-line method, should be

A) \$1,200.

B) \$600.

C) \$700.

D) \$1,400.

17) J. Long purchased computer equipment for \$5,000 plus HST at 13% on January 1, 2014. It has a residual value of \$500 with a useful life of 5 years. After the appropriate adjusting entries are made, the book value of the asset on December 31, 2014, under the double-declining-method, is

A) \$1,800.

B) \$3,390.

C) \$3,000.

D) \$4,100.

18) J. Long purchased computer equipment for \$5,000 plus HST at 13% on January 1, 2014. It has a residual value of \$500 with a useful life of 5 years. After the appropriate adjusting entries are made, the book value of the asset on December 31, 2015, under the double-declining-method, is

A) \$1,800.

B) \$2,034.

C) \$1,620.

D) \$1,831.

19) Straight-line amortization is used in the first year when double-declining-balance should be used. This error would cause

A) the period&#39;s net income to be overstated.

B) the period&#39;s net income to be understated.

C) the period end assets to be understated.

D) None of these are correct.

20) What would the amortization be in year 3 for a computer system using the straight-line method when cost is \$5,000 plus HST at 13%, residual value is \$1,000, and the expected life is 4 years?

A) \$2,000

B) \$1,500

C) \$1,250

D) \$1,000

Dec 07 2019 View more View Less