41) Under federal law a patent is granted to the holder for 25 years.
A) $15,000
B) $20,000
C) $14,988
D) $19,983
42) The Mash Tun Corp. purchased equipment on September 1, 2010 for $200,000. The residual value is $20,000 and the estimated life is 5 years or 60,000 hours. Compute depreciation expense for the year ending December 31, 2011, if the Mash Tun Corp. uses the double-declining-balance method of depreciation.
A) $69,333
B) $48,000
C) $43,200
D) $62,400
43) Kegging & Canning Inc. acquired equipment on June 30, 2010, for $175,000. The residual value is $35,000 and the estimated life is 5 years or 40,000 hours. Compute the balance in Accumulated Depreciation as of December 31, 2012, if Kegging & Canning Inc. uses the double-declining-balance method of depreciation.
A) $99,680
B) $105,840
C) $124,600
D) $117,600
44) Lauter Tun Corporation acquired equipment on January 1, 2009, for $300,000. The equipment had an estimated useful life of 10 years and an estimated salvage value of $25,000. On January 1, 2012, Lauter Tun Corporation revised the total useful life of the equipment to 8 years and the estimated salvage value to be $10,000. Compute depreciation expense for the year ending December 31, 2012, if Lauter Tun Corporation uses straight-line depreciation.
A) $25,938
B) $38,500
C) $41,500
D) $43,500
45) Big Rock Times Corporation (BRT) acquired equipment on January 1, 2009, for $300,000. The equipment had an estimated useful life of 10 years and an estimated salvage value of $25,000. On January 1, 2012, BRT Corporation revised the total useful life of the equipment to 6 years and the estimated salvage value to be $10,000. Compute the book value of the equipment as of December 31, 2012, if BRT Corporation uses straight-line depreciation.
A) $148,333
B) $151,667
C) $155,000
D) $190,000
46) A revision of an estimate which extends the asset's useful life:
A) is ignored until the last year of the asset's life
B) requires restatement of prior years' financial statements
C) increases depreciation expense and decreases owners' equity
D) decreases depreciation expense and increases owners' equity
47) A
fully amortized asset
is an asset:
A) whose book value has reached zero, and therefore has no market value
B) whose amortizable cost has reached its salvage value, and therefore is of no further use to the company
C) that has reached the end of its estimated useful life
D) that has reached the end of its actual useful life
48) Rhoundakona Corporation bought a capital asset on January 1, 2009, at a cost of $35,000. Estimated residual value is $5,000 and the estimated useful life is 8 years. The company uses straight-line depreciation. On January 1, 2012, Rhoundakona's management sells the asset for $25,000. The balance in Accumulated Depreciation on January 1, 2012, is:
A) $3,750
B) $4,375
C) $11,250
D) $13,125
49) Blockware Corporation has selected to use the revaluation model for its assets. Recently it had its building appraised. The appraiser placed a $5.0 M value on the building. Back in 2009 this building was purchased for $4.0M. This increases in value over cost requires a
A) Dr. to accumulated depreciation
B) Cr. to the building account
C) Cr. to revaluation surplus
D) Dr. to revaluation surplus
50) When an organization has determined that a piece of equipment is impaired the journal entry to record an impair of $1000 would require:
A) a cr to the equipment account
B) a dr to accumulated depreciation
C) a cr to accumulated depreciation
D) a cr to impairment loss