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 View more View Less
An organization with only a few layers of management is known as a(n):A. tall organization.B. flat organization.C. leveraged organization.D. coordinated organization.
Apr 18 2021Pharmacology When a drug is administered orally, the amount of the drug present in the bloodstream of the patient can be modeled by a function of the formCtatebtWhere Ct)...
Apr 24 20208a.) TTM: 2 years YTM: 8% C: 7% PV-8185 8b.) TTM: 25 years YTM: 8% C: 7% Question for Problem 8. How much does the price change if the yield to maturity, for each bond, ...
Dec 04 2019Maximum temperature in a lubricant. An oil is acting as a lubricant for a pair of cylindrical surfaces such as those shown in Fig. 10.4-1. The angular velocity of the out...
Aug 06 2020A cylinder with a movable piston contains of helium at room temperature. More helium was added to the cylinder and the volume was adjusted so that the gas pressure remai...
Aug 19 2021Supply and demand – Equilibrium Price and QuantityThe following relation describes the monthly demand and supply for a computer support service, catering to small busine...
Apr 24 2020How much money must you save each year to accumulate $200,000 for your retirement in 10 years? (rate of return is 8%)You just won the lottery: 20 million dollars! You hav...
Jul 09 2021Calculate the expected return on stock of Gamma Inc.: State of the economy Probability of the states Percentage returns Economic recession 20% -6.3% Steady economic growt...
Sep 06 2020Write an essay on the electricity history of how we use the electricity today and compared to 1900
Feb 06 2020The ash hopper in Fig. 6.20 consists of a bin mounted on a rigid platform supported by four columns 24 ft long. The weight of the platform, bin, and contents is 100 kips ...
Jun 10 2020