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Which one of the following does not depreciate?
 
Land
 
A truck costs $16,000 with a residual value of $1,000.
It has an estimated useful life of five years. If the truck was bought on July 3,
what would be the book value at the end of year 1 using straight-line rate?
 
$14,500
 
Depreciation expense in the declining-balance method is calculated by the depreciation rate:
Times book value at beginning of year
 
For partial-years depreciation, if an asset is purchased on February 8, how many months' depreciation will be taken for the year?
 
11
 
What is the depreciation expense for the second year (straight-line method) using the following?
 
Cost of equipment: $14,000
Residual value: $500
Life: 4 years
 
$3,375
 
What is the depreciation expense for the first year straight-line method using the following?
 
Cost of car: $26,000
Residual value: $6,000
Life: 5 years
 
$4,000
 
A new truck costing $50,000 with a residual value of $4,000 has an estimated useful life of five years.
Using the declining-balance method at twice the straight-line rate, the depreciation expense in year 2 is:
 
$12,000
 
If a car is depreciated in four years, the rate of depreciation using twice the straight-line rate is:
 
50%
 

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A new piece of equipment costs $18,000 with a residual value of $600 and an estimated useful life of five years.
Assuming twice the straight-line rate, the book value at the end of year 2 using the declining-balance method is:
 
$6,480
 
A truck costs $8,000 with a residual value of $1,000. The truck is expected to have a useful life of 70,000 miles.
Assuming the truck is driven 15,000 miles the first year, the depreciation expense would be:

$1,500
 
Book value is:
 
Cost minus accumulated depreciation
 
A truck costs $16,000 with a residual value of $1,000. It has an estimated useful life of five years.
If the truck was bought on July 3, what would be the book value at the end of year 1 using straight-line rate?
 
$14,500
 
A truck costs $9,200 with a residual value of $1,000. It is estimated that the useful life of the truck is four years.
The amount of depreciation expense in year 2 using the declining-balance method at twice the straight-line rate is:
 
$2,300
 
Using the straight-line method, what is the depreciation expense for a computer that cost $4,500,
has a residual value of $700, and has a life of four years?
 
$950
 
What is the depreciation expense for the first year straight-line method using the following?
 
Cost of car / $26,000
Residual value / $6,000
Life / 5 years
 
$4,000
 
Federal Express bought material handling equipment for its hub operations that cost $180,000. Using the MACRS,
what is the depreciation expense in year 3 (using a five-year class)?
 
$34,560

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