Solved

On January 1,Year 1,Warren Co

Question 94

Matching

On January 1,Year 1,Warren Co.purchased a machine for $120,000.Warren estimated the useful life of the machine to be 10 years and the salvage value to be $20,000.Indicate whether each of the following statements is true or false.

Premises:

Responses:

Depreciation expense for Year 1 under the straight-line method would be $12,000.

True

The accumulated depreciation at the end of Year 2 under the straight-line method would be $20,000.

False

The book value of the machine under both the double declining method and the straight-line method at the end of 10 years would be $20,000.

Depreciation expense for Year 1 under the double declining method would be $24,000.

The accumulated depreciation at the end of Year 2 under the double declining method would be $48,000.

Premises:

Depreciation expense for Year 1 under the straight-line method would be $12,000.

The accumulated depreciation at the end of Year 2 under the straight-line method would be $20,000.

The book value of the machine under both the double declining method and the straight-line method at the end of 10 years would be $20,000.

Depreciation expense for Year 1 under the double declining method would be $24,000.

The accumulated depreciation at the end of Year 2 under the double declining method would be $48,000.

Responses:

True

False

Correct Answer:

Premises:

Responses:

Depreciation expense for Year 1 under the straight-line method would be $12,000.

The accumulated depreciation at the end of Year 2 under the straight-line method would be $20,000.

The book value of the machine under both the double declining method and the straight-line method at the end of 10 years would be $20,000.

Depreciation expense for Year 1 under the double declining method would be $24,000.

The accumulated depreciation at the end of Year 2 under the double declining method would be $48,000.

Related Questions

Q85: When a building is purchased simultaneously with

Q89: Schubert Co.owned equipment that originally cost $48,000.On

Q90: The term used to recognize expense for

Q91: Indicate whether each of the following statements

Q93: Indicate whether each of the following statements

Q93: Land differs from other property because it

Q95: Indicate whether each of the following statements

Q96: Tangible assets include land,equipment,and goodwill.

Q96: Indicate whether each of the following statements

Q98: A copyright is an intangible asset with

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

Scan the QR code to install the App and get 2 free unlocks

Unlock quizzes for free by uploading documents