Accounting: Plant Asset Depreciation Methods
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Questions and Answers

What is the acquisition cost of the plant asset purchased by X company?

  • $120,000
  • $100,000
  • $130,000 (correct)
  • $140,000

    • What is the estimated salvage value of the plant asset?

  • $5,000
  • $10,000 (correct)
  • $8,000
  • $12,000

    • What is the estimated useful life of the plant asset?

  • 3 years
  • 6 years
  • 5 years (correct)
  • 4 years

    • What is the depreciation expense for the first year using the Straight-line method?

    <p>$20,000</p> Signup and view all the answers

    What is the depreciation expense for the first year using the Double-declining-balance method?

    <p>$52,000</p> Signup and view all the answers

    What is the depreciation expense for the first year using the Straight-line method?

    <p>$24,000</p> Signup and view all the answers

    What is the depreciation expense for the first year using the Double-declining-balance method?

    <p>$52,000</p> Signup and view all the answers

    What is the appropriate adjusting journal entry to record the depreciation expense for the first year using the Straight-line method?

    <p>Debit Depreciation Expense $24,000, Credit Accumulated Depreciation $24,000</p> Signup and view all the answers

    What is the appropriate adjusting journal entry to record the depreciation expense for the first year using the Double-declining-balance method?

    <p>Debit Depreciation Expense $52,000, Credit Accumulated Depreciation $52,000</p> Signup and view all the answers

    What is the total depreciation expense recognized over the 5-year useful life of the plant asset using the Straight-line method?

    <p>$120,000</p> Signup and view all the answers

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