m SUMOT e ye OE Rem Cep Bay Chan PO 27 15. At the end of the expected useful life of a depreciable asset with an estimated 15 % residual value, the accumulated depreciation would equal the original cost of the asset under which of the following depreciation stuIONS methods? OE Straiaht-Line Sum-of-the-Years'-Digits Yes No a. Yes b No c. Yes No d. No Yes 16. The composite depreciation method: is applied to a group of homogeneous assets b. is an accelerated method of depreciation does not recognize gain or loss on the retirement of single assets in the group C. d. excludes residual value from the base of the depreciation calculation 17. On July 1, 2018, Mundo Corporation purchased factory equioment for $50,000. Residual value was estimated at $2,000. The equipment will be depreciated over 10 years using the double-declining-balance method. Counting the year of acquisition as one-half year, Mundo should record 2019 depreciation expense of ANSWE Form BER $7,680 $9,000 $9,600 $10,000 a. b. C. d. 18. A fixed asset with a 5-year estimated useful life is sold during the second year. How would the use of the straight- line method of depreciation instead of the double-declining-balance method of depreciation affect the amount of gain or loss on the sale of the fixed asset? Gain Loss No effect No effect Decrease No effect Increase Increase C. d. Increase Decrease tn atoblo natural resource. Crowder is required
m SUMOT e ye OE Rem Cep Bay Chan PO 27 15. At the end of the expected useful life of a depreciable asset with an estimated 15 % residual value, the accumulated depreciation would equal the original cost of the asset under which of the following depreciation stuIONS methods? OE Straiaht-Line Sum-of-the-Years'-Digits Yes No a. Yes b No c. Yes No d. No Yes 16. The composite depreciation method: is applied to a group of homogeneous assets b. is an accelerated method of depreciation does not recognize gain or loss on the retirement of single assets in the group C. d. excludes residual value from the base of the depreciation calculation 17. On July 1, 2018, Mundo Corporation purchased factory equioment for $50,000. Residual value was estimated at $2,000. The equipment will be depreciated over 10 years using the double-declining-balance method. Counting the year of acquisition as one-half year, Mundo should record 2019 depreciation expense of ANSWE Form BER $7,680 $9,000 $9,600 $10,000 a. b. C. d. 18. A fixed asset with a 5-year estimated useful life is sold during the second year. How would the use of the straight- line method of depreciation instead of the double-declining-balance method of depreciation affect the amount of gain or loss on the sale of the fixed asset? Gain Loss No effect No effect Decrease No effect Increase Increase C. d. Increase Decrease tn atoblo natural resource. Crowder is required
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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please answer question 17
Transcribed Image Text:m
SUMOT
e ye
OE
Rem
Cep
Bay
Chan
PO
27
15. At the end of the expected useful life of a depreciable asset with an estimated 15 % residual value, the
accumulated depreciation would equal the original cost of the asset under which of the following depreciation
stuIONS
methods?
OE
Straiaht-Line
Sum-of-the-Years'-Digits
Yes
No
a.
Yes
b
No
c.
Yes
No
d.
No
Yes
16. The composite depreciation method:
is applied to a group of homogeneous assets
b.
is an accelerated method of depreciation
does not recognize gain or loss on the retirement of single assets in the group
C.
d.
excludes residual value from the base of the depreciation calculation
17. On July 1, 2018, Mundo Corporation purchased factory equioment for $50,000. Residual value was estimated at
$2,000. The equipment will be depreciated over 10 years using the double-declining-balance method. Counting
the year of acquisition as one-half year, Mundo should record 2019 depreciation expense of
ANSWE
Form
BER
$7,680
$9,000
$9,600
$10,000
a.
b.
C.
d.
18. A fixed asset with a 5-year estimated useful life is sold during the second year. How would the use of the straight-
line method of depreciation instead of the double-declining-balance method of depreciation affect the amount of
gain or loss on the sale of the fixed asset?
Gain
Loss
No effect
No effect
Decrease
No effect
Increase
Increase
C.
d.
Increase
Decrease
tn atoblo natural resource. Crowder is required
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