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Find the book value using the MACRS method of depreciation and the MACRS depreciation rates table. Round to the nearest dollar. Find the book value using the MACRS method of depreciation and the MACRS depreciation rates table. Round to the nearest dollar. -Cost: $309,500 Recovery Period: 7-year After: First Year A) $278,550 B) $247,600 C) $265,272 D) $233,703 -Cost: $309,500 Recovery Period: 7-year After: First Year


A) $278,550
B) $247,600
C) $265,272
D) $233,703

E) All of the above
F) A) and C)

Correct Answer

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Solve the problem. Round to the nearest dollar. -Rainbow Ice Cream bought a frozen custard maker that cost $9,400. The expected life is 5,000 hours Of production with a salvage value of $940. Find the book value at the end of the third year. Use the Units-of-production method of depreciation given the following production schedule. Solve the problem. Round to the nearest dollar. -Rainbow Ice Cream bought a frozen custard maker that cost $9,400. The expected life is 5,000 hours Of production with a salvage value of $940. Find the book value at the end of the third year. Use the Units-of-production method of depreciation given the following production schedule. A) $1,244 B) $1,372 C) $2,184 D) $7,216


A) $1,244
B) $1,372
C) $2,184
D) $7,216

E) A) and B)
F) C) and D)

Correct Answer

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Use the MACRS depreciation rates table to solve the problem. Round to the nearest dollar. Use the MACRS depreciation rates table to solve the problem. Round to the nearest dollar. -Angelica Healthcare purchased new lab equipment (7-year property) for $138,000. Find the Accumulated depreciation at the end of 5 years. A) $114,154 B) $107,212 C) $119,522 D) $130,051 -Angelica Healthcare purchased new lab equipment (7-year property) for $138,000. Find the Accumulated depreciation at the end of 5 years.


A) $114,154
B) $107,212
C) $119,522
D) $130,051

E) A) and C)
F) None of the above

Correct Answer

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Use the MACRS depreciation rates table to find the recovery percent (rate) , given the recovery year and recovery period. Use the MACRS depreciation rates table to find the recovery percent (rate) , given the recovery year and recovery period. -Recovery year: 5 Recovery period: 5-year A) 8.93% B) 12.49% C) 7.41% D) 11.52% -Recovery year: 5 Recovery period: 5-year


A) 8.93%
B) 12.49%
C) 7.41%
D) 11.52%

E) B) and D)
F) A) and D)

Correct Answer

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Find the annual straight-line rate of depreciation for the estimated life. -30 years


A) 1.7%
B) 30%
C) 0.3%
D) 3.3%

E) B) and C)
F) C) and D)

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Find the annual amount of depreciation using the straight-line method. Round to the nearest dollar. -Cost: $460 Estimated life: 8 years Estimated scrap value: $92


A) $12
B) $92
C) $58
D) $46

E) A) and C)
F) B) and C)

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Provide an appropriate response. -Explain how to determine the depreciation fraction in any year of an asset's life when using the sum-of-the-years'-digits method of depreciation.

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Answered by ExamLex AI

To determine the depreciation fraction in any year of an asset's life using the sum-of-the-years'-digits method of depreciation, you first need to calculate the sum of the years' digits for the asset's useful life. This is done by adding together the digits representing each year of the asset's useful life. For example, if the asset has a useful life of 5 years, the sum of the years' digits would be 15 (1+2+3+4+5). Once you have the sum of the years' digits, you can then determine the depreciation fraction for a specific year by taking the remaining useful life of the asset and dividing it by the sum of the years' digits. For example, if you are calculating the depreciation fraction for year 3 of the asset's life, and the remaining useful life is 3 years, you would divide 3 by 15 to get a depreciation fraction of 0.2. This depreciation fraction is then used to calculate the depreciation expense for that year by multiplying it by the depreciable cost of the asset. This method of depreciation results in higher depreciation expenses in the earlier years of an asset's life, reflecting the higher usage and wear and tear during those years.

Provide an appropriate response. -Explain why a business asset may be depreciated using two or more different methods.

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Answered by ExamLex AI

Answered by ExamLex AI

A business asset may be depreciated usin...

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Use the double-declining-balance method of depreciation. Round to the nearest dollar. -New Town Deli buys refrigerated counters for $34,000 and estimates the life at 5 years with a scrap Value of $3,400. What is the amount of depreciation for the third year?


A) $3,400
B) $6,120
C) $4,896
D) $4,406

E) All of the above
F) C) and D)

Correct Answer

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Find the first year's depreciation, using the double-declining-balance method. Round to the nearest dollar. -Cost: $1,550 Est. life: 20 years Est. scrap: $155


A) $155
B) $78
C) $140
D) $70

E) None of the above
F) A) and B)

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Provide an appropriate response. -Explain in your own words why the book values of an asset may never be less than the salvage value.

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Answered by ExamLex AI

The book value of an asset may never be ...

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Use the MACRS depreciation rates table to find the recovery percent (rate) , given the recovery year and recovery period. Use the MACRS depreciation rates table to find the recovery percent (rate) , given the recovery year and recovery period. -Recovery year: 9 Recovery period: 20-year A) 3.637% B) 4.461% C) 4.522% D) 4.462% -Recovery year: 9 Recovery period: 20-year


A) 3.637%
B) 4.461%
C) 4.522%
D) 4.462%

E) A) and D)
F) All of the above

Correct Answer

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D

Use the MACRS depreciation rates table to solve the problem. Round to the nearest dollar. Use the MACRS depreciation rates table to solve the problem. Round to the nearest dollar. -Midtown Florists purchased a delivery van (3-year property) for $13,400. Find the book value at The end of two years. A) $6,432 B) $8,934 C) $10,423 D) $2,977 -Midtown Florists purchased a delivery van (3-year property) for $13,400. Find the book value at The end of two years.


A) $6,432
B) $8,934
C) $10,423
D) $2,977

E) B) and C)
F) None of the above

Correct Answer

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Find the depreciation per unit. Round to the nearest cent. -Cost: $655,000 Salvage: $65,500 Est. Life: 62,000 hours


A) $9.51
B) $105.60
C) $10.56
D) $95.10

E) A) and C)
F) A) and B)

Correct Answer

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Find the book value using the MACRS method of depreciation and the MACRS depreciation rates table. Round to the nearest dollar. Find the book value using the MACRS method of depreciation and the MACRS depreciation rates table. Round to the nearest dollar. -Cost: $190,000 Recovery Period: 5-year After: Third year A) $153,520 B) $54,720 C) $36,480 D) $106,913 -Cost: $190,000 Recovery Period: 5-year After: Third year


A) $153,520
B) $54,720
C) $36,480
D) $106,913

E) B) and C)
F) None of the above

Correct Answer

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Find the book value to the nearest dollar. -Cost $2,890, life 7 years, scrap value $231 at the end of 1 year, sum-of-the-years'-digits method


A) $2,225
B) $2,510
C) $2,477
D) $2,064

E) B) and D)
F) A) and C)

Correct Answer

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Solve the problem. Round to the nearest dollar. -Central Street bought a rolling machine that cost $58,000. The expected life is 600,000 hours of Production with a salvage value of $5,800. Find the book value at the end of the third year. Use the Units-of-production method of depreciation given the following production schedule. Solve the problem. Round to the nearest dollar. -Central Street bought a rolling machine that cost $58,000. The expected life is 600,000 hours of Production with a salvage value of $5,800. Find the book value at the end of the third year. Use the Units-of-production method of depreciation given the following production schedule. A) $23,350 B) $34,650 C) $20,783 D) $17,550


A) $23,350
B) $34,650
C) $20,783
D) $17,550

E) All of the above
F) A) and B)

Correct Answer

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Provide an appropriate response. -Explain how the annual depreciation amount is found using the units-of-production method.

Correct Answer

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Answered by ExamLex AI

The units-of-production method is a way ...

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Find the book value after the given number of years, using the straight-line method. Round your answer to the nearest dollar. -Find the book value after the given number of years, using the straight-line method. Round your answer to the nearest dollar. - A) $2,974 B) $1,632 C) $1,668 D) $1,467


A) $2,974
B) $1,632
C) $1,668
D) $1,467

E) B) and C)
F) A) and D)

Correct Answer

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Use the double-declining-balance method of depreciation. Round to the nearest dollar. -Beta Graphics buys some CAD-CAM computer equipment at a cost of $8,350 and estimates the life At 10 years with a scrap value of $835. What is its book value at the end of the fourth year?


A) $5,344
B) $3,420
C) $835
D) $3,078

E) B) and C)
F) A) and D)

Correct Answer

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B

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