Question

Which of the following costs related to a company car would NOT be expensed? (A) The cost to install an engine with higher horsepower (B) The cost to change car's oil (C) The cost to replace a broken windshield (D) The cost of new tires (2 marks) 8. Daniel Construction Company paid S45,000 for equipment with a market value of $95,000. At which of the following amounts should the equipment be recorded? (A) $95,000 (B) $45,000 (C) $42,500 (D) $5,000 2 marks) 9.A company purchased a used machine for $80,000. The machine required installation costs of $8,000 and insurance while in transit of $500. At which of the following amounts would the equipment be recorded? (A) $80,500 (B) $88,500 (C) $88,000 (D) $80,000 (2 marks) 10. Which of the following depreciation methods allocates an equal amount of depreciation to each year? (A) Units-of-production (B) Straight-line (C) Declining-balance (D) Double-declining-balance (2 marks)

Answer 1

7]	[A] The cost to install an engine with higher horsepower.
8]	[B]
9]	[B]
10]	[B]
	SECTION A
1]	[C]
2]	[B]
3]	[B]
4]	= 14000-52000 = -38000
	[A]
5]	[B]
6]	[A]