Question

please help with these accouting questions!

3 IV ab X, X 1 Styles Styles Pane S 11. Equipment was purchased for $150,000. Freight charges amounted to $7,000 and there was a cost of $20,000 for building a foundation and installing the equipment. It is estimated that the equipment will have a $30,000 salvage value at the end of its 5-year useful life. Depreciation expense each year using the straight-line method will be A) $35,400. B) $29,400 C) $24,600 D) $24,000. 12. A company purchased factory equipment on April 1, 2017, for $128,000. It is estimated that the equipment will have a $16,000 salvage value at the end of its 10-year useful life. Using the straight-line method of depreciation, the amount to be recorded as depreciation expense at December 31, 2017, is A) $12,800 B) $11,200. C) $8,400. D) $9,600 13. On November 1, 2016, Love Company places a new asset into service. The cost of the asset is $90,000 with an estimated 5-year life and $10,000 salvage value at the end of its useful life. What is the depreciation expense for 2017 if Love Company uses the straight-line method of depreciation? A) $4,000 B) $16,000. C) $2,667 D) $9,000 14. Mitchell Corporation bought equipment on January 1, 2017. The equipment cost $300,000 and had an expected salvage value of $50,000. The life of the equipment was estimated to be 6 years. The depreciable cost of the equipment is A) $300,000 B) $250,000 C) $50,000. D) $41,667. 1252 words x English (United Stater)

Answer 1

Ans. 11	Option    B    $29,400
	Calculations for total cost of equipment:
	Purchase cost	$150,000
	Freight charges	$7,000
	Foundation and installation cost	$20,000
	Total cost of equipment	$177,000
	Straight line depreciation = (Cost of asset - Residual value) / Useful life in years
	($177,000 - $30,000) / 5
	$147,000 / 5
	$29,400
	*In Straight line method the depreciation is equal in each year.
Ans. 12	Option C   $8,400
	Annual depreciation = (Cost of asset - Residual value) / Useful life in years
	($128,000 - $16,000) / 10
	$112,000 / 10
	$11,200
	In 2017, the equipment was used only for 9 months (1 April - 31 Dec.) so the
	depreciation will be calculated for 9 months only.
	Depreciation for 9 months = Annual depreciation * Fraction of year
	$11,200 * 9 / 12
	$8,400
Ans. 13	Option B   $16,000
	Straight line depreciation = (Cost of asset - Residual value) / Useful life in years
	($90,000 - $10,000) / 5
	$80,000 / 5
	$16,000
	*In Straight line method the depreciation is equal in each year.
Ans. 14	Option B   $250,000
	Depreciable cost = Cost of equipment - Salvage value
	$300,000 - $50,000
	$250,000