pfinancial accounting exam 3 tophat chp 9

Cainas cookies purchases equipment on 1/1/15 for $40,000, with an estimated 4 year life, to be used for a total of 24,000 baking hours, with a $4,000 residual value. she bakes for 4,000 hours in 2015 and 7,000 hours in 2016. what is her depreciation expense for 2016 if she uses units of production depreciation method?

$10,500

Diva, Inc. purchases a company car on 1/1/15 for $40,000, with an estimated 4 year life, to be used for a total of 24,000 miles, with a $4,000 residual value. She drives for 4,000 hours in 2015 and 7,000 miles in 2016. What is her depreciation expense for 2016 if she uses units of production depreciation method?

$10,500

Cainas Cookies buys a piece of equipment on 1/1/18 for $20,000, salvage value of $2,000 and a 4 year life. Assuming Double Declining balance, what will be Cainas's depreciation expense in 2019?

$5,000

Cainas clayworks purchases 3 pottery wheels for $1,000 each and pays $500 (total) to have them delivered to the studio. During the first year of operations, she has to have one of the machines fixed for $100. Assuming a $300 salvage value, 4 year estimated life and that she uses straight line, what is her annual depreciation expense?

$800

which year was the first thanksgiving feast held?

1621

which president proclaimed thanksgiving as a national holiday?

Abraham Lincoln

All but which of the following are acceptable depreciation methods under GAAP?

Amortization

Which of the following would not be considered a capital expenditure?

Annual maintenance on the building's air conditioning system

Which of the following would be considered a capital expenditure?

Building additional 10,000 sq. feet of warehouse space to existing company headquarters

which state easts the most turkey at thanksgiving?

California

All but which if the following are amortized under GAAP?

Goodwill

which of the following assets is not depreciated?

Land

All of the following are examples of intangible assets except for?

Leasehold improvements

which of the following was probably not served at the first thanksgiving dinner?

Pumpkin Pie

All but which are considered revenue expenditures?

Replacing the roof of the company's manufacturing facility

All but which of the following are considered Intangible Assets?

Research and Development Costs

A computer server with a cost of $50,000, $5,000 residual value, is purchased on 1/1/16 with an estimated 5 year life, and the company uses double declining balance depreciation. The company decides to sell the server for $22,000 on 12/31/17. Which of the following statements is true?

There is a $4,000 gain on this transaction

equipment with a cost of $30,000 ($2,000 residual value) is purchased on 1/1/19 with an estimated 4 year life, and the company uses straight-line depreciation. the company decides to sell the machine for $20,000 on 6/30/21. which of the following statements is true?

There is a $500 gain on this transaction

A copy machine with a cost of $40,000 (and no residual value) is purchased on 1/1/12 with an estimated 5 year life, and the company uses straight line depreciation. The company decides to sell the machine for $25,000 on 9/30/14. Which of the following statements is true?

There is a $7,000 gain on this transaction