15 Questions
What is the annual depreciation expense for the machine for each year of its life, using the double-declining balance method?
Year 1: $300,000, Year 2: $180,000, Year 3: $108,000, Year 4: $64,800, Year 5: $38,880
What is the depreciation expense for the truck for the current year and 2021, assuming the straight-line method is used?
Current year: $6,933.33, 2021: $6,933.33
What is the total units of production for the machine's 5-year life?
20,000 hours
What is the salvage value of the truck?
$2,200
What is the double-declining balance rate used for the machine's depreciation?
40%
Depreciation expense for the machine for year 2, using the double-declining balance method, is $135,000.
True
The salvage value of the truck is $2,200.
True
The total units of production for the machine's 5-year life is 20,000.
True
The double-declining balance rate used for the machine's depreciation is 40%.
True
The annual depreciation expense for the machine for year 1, using the straight-line method, is $101,250.
True
Using the double-declining balance method, the depreciation expense for the machine for year 3 is $168,750.
True
The annual depreciation expense for the machine for year 1, using the double-declining balance method, is $101,250.
True
The annual depreciation expense for the machine for year 4, using the double-declining balance method, is $108,000.
True
The annual depreciation expense for the machine for year 5, using the double-declining balance method, is $64,800.
True
The depreciation expense for the truck for the current year and 2021, assuming the straight-line method is used, is $6,300.
False
Test your knowledge of plant assets depreciation by calculating the annual depreciation expense for a machine over its estimated 5-year life, based on usage and salvage value. Practice solving depreciation problems with varying usage hours and salvage values.
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