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 (B)</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 (A)</p> Signup and view all the answers

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

<p>$24,000 (A)</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 (D)</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 (C)</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 (C)</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 (A)</p> Signup and view all the answers

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