Accumulated Depreciation Assignment | Top Universities

1. Real Angus Steakhouse purchased land for $75,000 cash. They also incurred commissions of $4,500 property taxes of $5.000 and title insurance of $800. The 55.000 in property taxes includes $4.000 in back taxes paid by Real Angus on behalf of the seller and $1.000 due for the current year after the purchase date For what amount should Real Angus Steakhouse record the land? A. 583.500 B. 584,300. C. 585,300. D. 575.000 25. Costello Company purchased a computer that cost $10.000. It had an estimated useful life of 5 years and no residual value. The computer was depreciated by the straight-line method and was sold at the end of the second year of use for $5,000 cash. Costello should record A. a loss of $1,000 B. a gain of $1.000. C. neither again nor a loss – the computer was sold at its book value. D. neither a gain nor a loss the gain that occurred, in this case, would not be recognized 26. What is the formula to compute the book value of an asset?

A. The fair value of the asset if the asset is sold. B. The cost of the asset less its accumulated depreciation. C. The cost of the asset minus the asset’s residual value. D. The cost at which the asset was purchased 27. Crestview Estates purchased a tractor on January 1, 2018, for $65,000. The tractor’s useful life is estimated to be 10 years and has a residual value of $5,000. If Crestview uses the straight-line method of depreciation what is the amount of depreciation expense and the ending book value on December 31, 2018? A. $6,500 depreciation expense and $58,500 book value B. $6,000 depreciation expense and $54.000 book value C. $6,500 depreciation expense and $65.000 book value D. $6,000 depreciation expense and $59,000 book value 28. Crestview Estates purchased a tractor on January 1, 2018, for $65,000. The tractor’s useful life is estimated to be 10 years and has a residual value of $5.000. If Crestview uses the double-declining balance method of depreciation what is the amount of depreciation expense that Crestview will record on December 31, 2018, the end of the first year? A. $13,000 B. $12,000 C. $6,500 D. $6,000 2. Crestview Estates purchased a tractor on January 1, 2018, for $65,000. The tractor’s useful life is estimated to be 10 years and has a residual value of $5,000. If Crestview uses the double-declining balance method of depreciation what is the amount of depreciation expense that Crestview will record on December 31, 2019, the end of the second year? A. $10,400 B. 89,600 C. $12,000 $13,000 Rev. 1217. Get Accounting Homework Help Today