81. The journal entry for recording an operating lease payment would
A. be a memo entry only
B. debit the fixed asset and credit Cash
C. debit an expense and credit Cash
D. debit a liability and credit Cash
82. When determining whether to record an asset as a fixed asset, what two criteria must be met?
A. Must be an investment and must be long lived.
B. Must be long lived and must use the asset in a productive manner.
C. Must be short lived and must be a tangible asset.
D. Must be a tangible asset and must be an investment.
83. Factors contributing to a decline in the usefulness of a fixed asset may be divided into the following two categories
A. salvage and functional
B. physical and functional
C. residual and salvage
D. functional and residual
84. A fixed asset's estimated value at the time it is to be retired from service is called
A. book value
B. residual value
C. market value
D. carrying value
85. All of the following below are needed for the calculation of straight-line depreciation except
A. cost
B. residual value
C. estimated life
D. units produced
86. The method of determining depreciation that yields successive reductions in the periodic depreciation charge over the estimated life of the asset is
A. units-of-production
B. declining-balance
C. straight-line
D. time-valuation
87. When the amount of use of a fixed asset varies from year to year, the method of determining depreciation expense that best matches allocation of cost with revenue is
A. declining-balance
B. straight-line
C. units-of-production
D. MACRS
88. A machine with a cost of $80,000 has an estimated residual value of $5,000 and an estimated life of 5 years or 15,000 hours. It is to be depreciated by the units-of-production method. What is the amount of depreciation for the second full year, during which the machine was used 5,000 hours?
A. $5,000
B. $25,000
C. $15,000
D. $26,667
89. Equipment with a cost of $130,000 has an estimated residual value of $10,000 and an estimated life of 5 years or 12,000 hours. It is to be depreciated by the straight-line method. What is the amount of depreciation for the first full year, during which the equipment was used 3,300 hours?
A. $24,000
B. $32,500
C. $33,000
D. $35,750
90. A machine with a cost of $75,000 has an estimated residual value of $5,000 and an estimated life of 4 years or 18,000 hours. What is the amount of depreciation for the second full year, using the double declining-balance method?
A. $17,500
B. $37,500
C. $18,750
D. $16,667