6.2-21) Which depreciation method is most like the method that is used to calculate depletion of natural resources?
A) straight-line
B) double-declining balance
C) activity
D) No depreciation method is similar to depletion.
6.2-22) On January 1, 2011, Ace Electronics paid $400,000 cash for a computer that would be used to store and process its accounting information. The computer has a 5-year useful life, after which it will be worthless because it will be obsolete. How much depreciation expense should Ace Electronics record for the year ended December 31, 2011, using the straight-line method?
A) $400,000
B) $40,000
C) $80,000
D) $160,000
6.2-23) On January 1, 2011, Ace Electronics paid $400,000 cash for a computer that would be used to store and process its accounting information. The computer has a 5-year useful life, after which it will be worthless because it will be obsolete. How much depreciation expense should Ace Electronics record for the year ended December 31,
2012, using the straight-line method?
A) $300,000
B) $40,000
C) $80,000
D) $160,000
6.2-24) On January 1, 2011, Ace Electronics paid $400,000 cash for a computer that would be used to store and process its accounting information. The computer has a 5-year useful life, after which it will be worthless because it will be obsolete. How much depreciation expense should Ace Electronics record for the year ended December 31,
2013, using the straight-line method?
A) $200,000
B) $40,000
C) $80,000
D) $160,000
6.2-25) On January 1, 2011, Ace Electronics paid $400,000 cash for a computer that would be used to store and process its accounting information. The computer has a 5-year useful life, after which it will be worthless because it will be obsolete. What should Ace Electronics report on its Statement of Cash Flows for the year ended December 31, 2011?
A) $(400,000) cash paid for investing activities
B) $(400,000) cash paid for financing activities
C) $(80,000) cash paid for depreciation
D) $(400,000) cash paid for operating activities
6.2-26) On January 1, 2011, Ace Electronics paid $400,000 cash for a computer that would be used to store and process its accounting information. The computer has a 5-year useful life, after which it will be worthless because it will be obsolete. Ace Electronics uses the straight-line method to depreciate its assets. At December 31, 2011, Ace will have accumulated depreciation of ________.
A) $400,000
B) $40,000
C) $80,000
D) $160,000
6.2-27) On January 1, 2011, Ace Electronics paid $400,000 cash for a computer that would be used to store and process its accounting information. The computer has a 5-year useful life, after which it will be worthless because it will be obsolete. Ace Electronics uses the straight-line method to depreciate its assets. At December 31,
2012, Ace will have accumulated depreciation of ________.
A) $320,000
B) $40,000
C) $80,000
D) $160,000
6.2-28) On January 1, 2011, Ace Electronics paid $400,000 cash for a computer that would be used to store and process its accounting information. The computer has a 5-year useful life, after which it will be worthless because it will be obsolete. Ace Electronics uses the straight-line method to depreciate its assets. At December 31,
2013, Ace will have accumulated depreciation of ________.
A) $240,000
B) $40,000
C) $80,000
D) $320,000
6.2-29) On January 1, 2011, Ace Electronics paid $400,000 cash for a computer that would be used to store and process its accounting information. The computer has a 5-year useful life, after which it will be worthless because it will be obsolete. Ace Electronics uses the straight-line method to depreciate its assets. The book value of the computer at December 31, 2011 is ________.
A) $320,000
B) $400,000
C) $480,000
D) $80,000
6.2-30) On January 1, 2011, Ace Electronics paid $400,000 cash for a computer that would be used to store and process its accounting information. The computer has a 5-year useful life, after which it will be worthless because it will be obsolete. Ace Electronics uses the straight-line method to depreciate its assets. The book value of the computer at December 31,
2012
is ________.
A) $400,000
B) $320,000
C) $240,000
D) $160,000