121.The calculation of depreciation using the declining balance method,
a.ignores residual value in determining the amount to which a constant rate is applied.
b.multiplies a constant percentage times the previous year's depreciation expense.
c.yields an increasing depreciation expense each period.
d.multiplies a declining percentage times a constant book value.
122.Farr Company purchased a new van for floral deliveries on January 1, 2014. The van cost €48,000 with an estimated life of 5 years and €12,000 residual value at the end of its useful life. The double-declining-balance method of depreciation will be used. What is the depreciation expense for 2014?
a.€9,600
b.€7,200
c.€14,400
d.€19,200
123.Farr Company purchased a new van for floral deliveries on January 1, 2014. The van cost €48,000 with an estimated life of 5 years and €12,000 residual value at the end of its useful life. The double-declining-balance method of depreciation will be used. What is the balance of the Accumulated Depreciation account at the end of 2015?
a.€7,680
b.€23,040
c.€30,720
d.€11,520
124.Moreno Company purchased equipment for $675,000 on January 1, 2013, and will use the double-declining-balance method of depreciation. It is estimated that the equipment will have a 3-year life and a $30,000 residual value at the end of its useful life. The amount of depreciation expense recognized in the year 2015 will be
a.$75,000.
b.$45,000.
c.$81,660.
d.$51,660.
125.A plant asset was purchased on January 1 for $120,000 with an estimated residual value of $20,000 at the end of its useful life. The current year's Depreciation Expense is $10,000 calculated on the straight-line basis and the balance of the Accumulated Depreciation account at the end of the year is $60,000. The remaining useful life of the plant asset is
a.10 years.
b.8 years.
c.6 years.
d.4 years.
126.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 residual 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.
127.Equipment was purchased for $51,000 on January 1, 2013. Freight charges amounted to $2,100 and there was a cost of $6,000 for building a foundation and installing the equipment. It is estimated that the equipment will have a $9,000 residual value at the end of its 5-year useful life. What is the amount of accumulated depreciation at December 31, 2014, if the straight-line method of depreciation is used?
a.$20,040
b.$10,020
c.$8,580
d.$17,160
128.A company purchased factory equipment on June 1, 2014, for ¥2,000,000. It is estimated that the equipment will have a ¥125,000 residual 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, 2014, is
a.¥187,500.
b.¥109,375.
c.¥93,750.
d.¥78,125.
129.A plant asset was purchased on January 1 for $50,000 with an estimated residual value of $10,000 at the end of its useful life. The current year's Depreciation Expense is $5,000 calculated on the straight-line basis and the balance of the Accumulated Depreciation account at the end of the year is $25,000. The remaining useful life of the plant asset is
a.10 years.
b.8 years.
c.5 years.
d.3 years.
130.Sargent Corporation bought equipment on January 1, 2014. The equipment cost €360,000 and had an expected residual value of €60,000. The life of the equipment was estimated to be 6 years. The depreciable cost of the equipment is
a.€360,000.
b.€300,000.
c.€200,000.
d.€50,000.