6 Questions
Using the double-declining-balance method, what is the depreciation expense for the second year of the cash register's useful life?
$1,620
Using the units-of-production method, what is the depreciation amount for the second year of the rope braiding machine?
$25,460
If an asset's book value is $18,000 on June 30, Year 6 and it is being depreciated at $3,000 annually using straight-line, what should be recorded if it is sold for $15,000 on December 31, Year 7?
A loss of $1,500
If Wilson Engineering sold an asset costing $45,000 with $5,000 salvage value on July 1, Year 5 for $20,000, using straight-line depreciation over 8 years, what is the gain/loss?
Loss of $5,000
If a company discards a display case with an original cost of $8,000 and accumulated depreciation of $7,200, what should be recognized?
A loss of $800
What is the formula for calculating depreciation using the double-declining-balance method?
2 * (Book Value / Remaining Useful Life)
This quiz covers the double-declining-balance method of depreciation in accounting. Questions involve calculating depreciation expenses for assets with given costs, useful life, and salvage values. Test your knowledge on accounting for asset depreciation!
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