10 Questions
What is the acquisition cost of the plant asset purchased by X company?
$130,000
What is the estimated salvage value of the plant asset?
$10,000
What is the estimated useful life of the plant asset?
5 years
What is the depreciation expense for the first year using the Straight-line method?
$20,000
What is the depreciation expense for the first year using the Double-declining-balance method?
$52,000
What is the depreciation expense for the first year using the Straight-line method?
$24,000
What is the depreciation expense for the first year using the Double-declining-balance method?
$52,000
What is the appropriate adjusting journal entry to record the depreciation expense for the first year using the Straight-line method?
Debit Depreciation Expense $24,000, Credit Accumulated Depreciation $24,000
What is the appropriate adjusting journal entry to record the depreciation expense for the first year using the Double-declining-balance method?
Debit Depreciation Expense $52,000, Credit Accumulated Depreciation $52,000
What is the total depreciation expense recognized over the 5-year useful life of the plant asset using the Straight-line method?
$120,000
This quiz covers the adjustment journal entries for plant asset depreciation using the Straight-line method and Double Declining Balance method. Calculate the necessary adjustments based on the given acquisition cost, salvage value, and useful life of the asset.
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