Question

30. What is sum-of-the-vears'-digits depreciation for 2018 $586,667 b. $660,000 c. $720,000 d. $781,485 a. 31. If, at the end of 2019, Davis Company decides the equipment still has five more years of life beyond 12/31/19, with a salvage value of $200,000, what is straight-line depreciation for 2019? (Assume straight-line used in all years.) a. $240,000 b. $256.667 c. $290,000 d. $440,000 32. Property, plant and equipment is usually presented in the balance sheet at: Replacement costs less accumulated depreciation. b. a. Historical cost less salvage value. Original cost less accumulated depreciation Acquisition cost less net book value thereof. c. d. 33. As generally used in accounting, what is depreciation? It is a process of asset valuation for balance sheet purposes. a. It applies only to long-lived intangible assets. It is used to indicate a decline in market value of a long-lived asset. d. b. c. It is an accounting process which allocates long-lived asset cost to accounting periods. 34. Interest cost incurred during building construction should be allocated to: Land. a br Building. c. Land Improvements. d. Other. 35. Demolition costs of building on land bought for plant site should be allocated to: a. Expense b. Building c Land Improvements d. Land 36. Back taxes paid on land purchased to be used for a building site should be allocated to: Building Depreciation Land Improvements a. c. d. Land 37. The cost of marketing research to promote a new product should be allocated t: a. Cost of goods sold b. Selling/Marketing expense Research and development d. Capital expenditure C. 6IP

Answer 1

31		straight line depreciation for 2019=book value as on 2018-salvage value/useful life
32		original cost less accumulated deprecaition
33		depreciation is an accounting processwhich allovcateslong lived assets cost to accounting periods
34		building
37		selling/marketing expense
36		building
35		land improvements