Showing posts with label Kansas Enterprises. Show all posts
Showing posts with label Kansas Enterprises. Show all posts

Saturday, October 10, 2020

Kansas Enterprises purchased equipment for $60,000 on January 1, 2021. The equipment is expected to have a five-year service life, with a residual value of $5,000 at the end of five years. Using the double-declining balance method, depreciation expense for 2022 would be:

Kansas Enterprises purchased equipment for $60,000 on January 1, 2021. The equipment is expected to have a five-year service life, with a residual value of $5,000 at the end of five years.
Using the double-declining balance method, depreciation expense for 2022 would be:



A) $22,000.

B) $13,200.

C) $14,400.

D) $24,000.


Answer: C


Kansas Enterprises purchased equipment for $60,000 on January 1, 2021. The equipment is expected to have a five-year life, with a residual value of $5,000 at the end of five years.

Using the double-declining balance method, the book value at December 31, 2022, would be:


A) $21,600.

B) $24,800.

C) $36,000.

D) $45,600.



Answer: A


A machine has a cost of $15,000, an estimated residual value of $3,000, and an estimated useful life of four years. The machine is being depreciated on a straight-line basis. At the end of the second year, what amount will be reported for accumulated depreciation?



A) $9,000.

B) $6,000.

C) $7,500.

D) $3,000.


Answer: B

Kansas Enterprises purchased equipment for $60,000 on January 1, 2021. The equipment is expected to have a five-year service life

Kansas Enterprises purchased equipment for $60,000 on January 1, 2021. The equipment is expected to have a five-year service life, with a residual value of $5,000 at the end of five years.
Using the double-declining balance method, depreciation expense for 2021 would be:



A) $24,000.

B) $22,000.

C) $19,000.

D) $20,000.


Answer: A


Kansas Enterprises purchased equipment for $60,000 on January 1, 2021. The equipment is expected to have a five-year service life, with a residual value of $5,000 at the end of five years.
Using the straight-line method, depreciation expense for 2022 and the book value at December 31, 2022, would be:



A) $12,000 and $36,000.

B) $12,000 and $31,000.

C) $11,000 and $33,000.

D) $11,000 and $38,000.


Answer: D


Kansas Enterprises purchased equipment for $60,000 on January 1, 2021. The equipment is expected to have a five-year service life, with a residual value of $5,000 at the end of five years.
Using the straight-line method, the book value at December 31, 2021, would be:



A) $44,000.

B) $49,000.

C) $55,000.

D) $60,000.


Answer: B

Kansas Enterprises purchased equipment for $60,000 on January 1, 2021. The equipment is expected to have a five-year service life,

Kansas Enterprises purchased equipment for $60,000 on January 1, 2021. The equipment is expected to have a five-year service life, with a residual value of $5,000 at the end of five years.
Using the straight-line method, depreciation expense for 2021 would be:



A) $12,000.

B) $11,000.

C) $60,000.

D) None of these.



Answer: B


Which depreciation method generally will result in the greatest amount of depreciation expense in the first year of the asset's life?


A) Straight-line.

B) Double-declining balance.

C) Activity-based.

D) Capitalization.


Answer: B


The depreciable cost used in calculating depreciation expense is:



A) Its service life.

B) The amount allowable under tax depreciation methods.

C) The difference between its replacement value and cost.

D) The asset's cost minus its estimated residual value.


Answer: D

Assuming a current ratio of 1.2 and an acid-test ratio of 0.80, how will the purchase of inventory with cash affect each ratio?

Assuming a current ratio of 1.2 and an acid-test ratio of 0.80, how will the purchase of inventory with cash affect each ratio? A) Increase ...