Home / Questions / Which amortization method uses the current book value in determining amortization? A) Str
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's net income to be overstated.
B) the period'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 Read more Less More
What causes a positive NPV for a project?
Aug 14 2020GDP may be computed using the expenditure or value-added approaches.61) U.S. GDP excludes underground activities.62) A German tourist visits Disney World in Orlando; the...
Dec 07 2019As a start-up company, there is no sales history to refer to, how would you help a new company build its first sales budget?
Aug 18 2020Describe the genre and cultural/situational context of your data. 2) Use examples from the data, i.e. the lexico-grammatical choices of the text, to define the register (...
Feb 05 2020Describe a discriminatory situation that you experienced or witnessed. Identify the individual aspects of this discrimination. Describe any institutionalized racism that ...
May 04 2020Suppose the enrollment at your university unexpectedly declines. True or False: Apartment owners in the area will face higher vacancy rates and might raise their rents t...
Mar 29 2020If j is a transient state prove that for all i
Aug 05 2020A newly-issued bond pays its coupons once annually. Its coupon rate is 5%, its maturity is 20 years, and its yield to maturity is 8%. Find the holding period return for a...
Aug 30 2020Define the cyclically-adjusted budget, explain its significance, and state why it may differ from the actual budget. Suppose the full-employment, noninflationary level o...
Dec 05 2019Q.1.List the qualitative risks of Asia Paper Bag relation to bank lending?
May 15 2020Welcome to MyCourseHelp Services, World's leading Academic solutions provider with Millions of Happy Students.