QUESTION

# Chapter 11 Quiz: Intermediate Accounting ACCT 3201 Spring 2016

Cutter Enterprises purchased equipment for $54,000 on January 1, 2016. The equipment is expected to have a five-year life and a residual value of$5,100.

Using the double-declining balance method, the book value at December 31, 2017 would be:

$18,540.$19,440.

$20,640.$10,800.

Cutter Enterprises purchased equipment for $54,000 on January 1, 2016. The equipment is expected to have a five-year life and a residual value of$6,000.

Using the sum-of-the-years'-digits method, depreciation for 2016 and book value at December 31, 2016, would be (Do not round depreciation rate per year):

$16,000 and$38,000.

$16,000 and$32,000.

$18,000 and$30,000.

$18,000 and$36,000.

Cutter Enterprises purchased equipment for $66,000 on January 1, 2016. The equipment is expected to have a five-year life and a residual value of$4,200.

Using the sum-of-the-years'-digits method, depreciation for 2017 and book value at December 31, 2017, would be (Do not round depreciation rate per year):

$16,480 and$28,920.

$17,600 and$22,200.

$16,480 and$24,720.

$17,600 and$26,400.

Cutter Enterprises purchased equipment for $87,000 on January 1, 2016. The equipment is expected to have a five-year life and a residual value of$5,100.

Using the double-declining balance method, depreciation for 2016 and the book value at December 31, 2016, would be:

$32,760 and$54,240.

$34,800 and$52,200.

$34,800 and$47,100.

$32,760 and$49,140.

On March 31, 2016, M. Belotti purchased the right to remove gravel from an old rock quarry. The gravel is to be sold as roadbed for highway construction. The cost of the quarry rights was $255,000, with estimated salable rock of 34,000 tons. During 2016, Belotti loaded and sold 5,200 tons of rock and estimated that 28,800 tons remained at December 31, 2016. At January 1, 2017, Belotti estimated that 10,400 tons still remained. During 2017, Belotti loaded and sold 15,600 tons. Belotti would record depletion in 2016 of (Do not round depletion rate per ton):$46,042.

$39,000.$38,140.

$29,250. • @ • 1 order completed ANSWER Tutor has posted answer for$14.95. See answer's preview

\$14.95

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