Depreciation Computation and Equipment Charges in Accounting

School: Azusa Pacific University - Course: ACCT 512 - Subject: Accounting

ACCT 512 Week 6: Quiz Question 1 1 / 1 pts Pearson Company bought a machine on January 1, 2022. The machine cost $180,000 and had an expected salvage value of $30,000. The life of the machine was estimated to be 5 years. The depreciable cost of the machine is $180,000. Correct! $150,000. $180,000 - $30,000 = $150,000 (Cost - sal. val.) $50,000. $30,000. Question 2 1 / 1 pts When purchasing delivery equipment, sales taxes and motor vehicle licenses should be charged to Equipment. True Correct! False Question 3 1 / 1 pts All the following are needed for the computation of depreciation except Correct! training costs of manufacturing personnel. cost.

salvage value. estimated useful life. Question 4 1 / 1 pts Ryan, Inc. purchased a delivery truck with a $48,000 list price. The company was given a $4,800 cash discount by the dealer and paid $2,400 sales tax. Annual insurance on the truck is $1,200. As a result of the purchase, by how much will Ryan, Inc. increase its truck account? $48,000 $43,200 $46,800 Correct! $45,600 $48,000 - $4,800 + $2,400 = $45,600 (List price - disc. + sal. tax) Question 5 1 / 1 pts A truck costing $75,000 and on which $65,000 of accumulated depreciation has been re-corded was discarded as having no value. The entry to record this event would include a gain of $10,000. Correct! loss of $10,000. $0 - ($75,000 - $65,000) = ($10,000) (Sell. price - (cost - A/D)) credit to Accumulated Depreciation for $65,000.

credit to Accumulated Depreciation for $75,000. Question 6 1 / 1 pts A permanent decline in the market value of an asset is referred to as an impairment. Correct! True False Question 7 1 / 1 pts Trademarks are generally shown on the balance sheet under Correct! Intangibles. Investments. Property, Plant, and Equipment. Current Assets.