8. Long Lived Assets
Depreciation: Straight Line
8. Long Lived Assets
Depreciation: Straight Line
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Practice this topic
- Multiple Choice
ABC Company purchased a new machine on January 1, Year 1 for $44,000. The company expects the machine to last ten years. The company thinks it could sell the scrap metal from the machine for $4,000 at the end of its useful life. If the company uses the straight-line method for depreciation, what will be the net book value of the machine on December 31, Year 4?
301views4rank - Multiple Choice
DBQ Company purchased a machine on January 1, Year 1 for $60,000. The company estimated a five year useful life and $8,000 residual value. If the company uses the straight-line method for depreciation, what will be the amount of accumulated depreciation on December 31, Year 2?
268views4rank - Multiple ChoiceUnder the straight-line method of depreciation, what is the average dollar amount of depreciation expense recorded after 1 year for an asset with a cost of $10,000, a residual value of $2,000, and a useful life of 4 years?5views
- Multiple ChoiceWhich of the following depreciation methods allocates the cost of long-term assets based solely on the passage of time?10views