111.A plant asset cost ?256,000 and is estimated to have a ?32,000 residual value at the end of its 8-year useful life. The annual depreciation expense recorded for the third year using the double-declining-balance method would be
a.?21,440.
b.?36,000.
c.?31,500.
d.?28,000.
112.A factory machine was purchased for $150,000 on January 1, 2014. It was estimated that it would have a $30,000 residual value at the end of its 5-year useful life. It was also estimated that the machine would be run 40,000 hours in the 5 years. The company ran the machine for 4,000 actual hours in 2014. If the company uses the units-of-activity method of depreciation, the amount of depreciation expense for 2014 would be
a.$15,000.
b.$24,000.
c.$30,000.
d.$12,000.
113.Which of the following methods of computing depreciation is production based?
a.Straight-line
b.Declining-balance
c.Units-of-activity
d.None of these answer choices are correct.
114.Management should select the depreciation method that
a.is easiest to apply.
b.best measures the plant asset's fair value over its useful life.
c.best measures the plant asset's contribution to revenue over its useful life.
d.has been used most often in the past by the company.
115.The depreciation method that applies a constant percentage to depreciable cost in calculating depreciation is
a.straight-line.
b.units-of-activity.
c.declining-balance.
d.none of these answer choices are correct.
116.On October 1, 2014, Holt Company places a new asset into service. The cost of the asset is $120,000 with an estimated 5-year life and $30,000 residual value at the end of its useful life. What is the depreciation expense for 2014 if Holt Company uses the straight-line method of depreciation?
a.$4,500
b.$24,000
c.$6,000
d.$12,000
117.On October 1, 2014, Holt Company places a new asset into service. The cost of the asset is $120,000 with an estimated 5-year life and $30,000 residual value at the end of its useful life. What is the book value of the plant asset on the December 31, 2014, statement of financial position assuming that Holt Company uses the double-declining-balance method of depreciation?
a.$78,000
b.$90,000
c.$108,000
d.$114,000
118.Which depreciation method is most frequently used in businesses today?
a.Straight-line
b.Declining-balance
c.Units-of-activity
d.Double-declining-balance
119.Mott Company uses the units-of-activity method in computing depreciation. A new plant asset is purchased for $30,000 that will produce an estimated 100,000 units over its useful life. Estimated residual value at the end of its useful life is $2,500. What is the depreciation cost per unit (rounded to the nearest cent)?
a.$2.75
b.$3.00
c.$.28
d.$.30
120.Units-of-activity is an appropriate depreciation method to use when
a.it is impossible to determine the productivity of the asset.
b.the asset's use will be constant over its useful life.
c.the productivity of the asset varies significantly from one period to another.
d.the company is a manufacturing company.