91. A leasehold:
A. Is a short-term rental agreement.
B. Is the same as a patent.
C. Are the rights granted to the lessee by the lessor of a lease.
D. Is recorded as rent expense.
E. Is an investment asset.
92. A company's old machine,which cost $40,000 and had accumulated depreciation of $30,000, was traded in on a new machine of like purpose having an estimated 20-year life with an invoice price of $50,000. The company also paid $43,000 cash, along with its old machine to acquire the new machine. The value of new machine should be recorded at:
A. $40,000
B. $47,000
C. $50,000
D. $53,000
E. $10,000
93. Endor Fishing Company exchanged an old boat for a new one. The old boat had a cost of $260,000 and accumulated depreciation of $200,000. The new boat had an invoice price of $400,000. Endor received a trade in allowance of $100,000 on the old boat, which meant they paid $300,000 in addition to the old boat to acquire the new boat. What amount of gain or loss should be recorded on this exchange? (The exchange lacks commercial substance.)
A. $0 gain or loss
B. $40,000 gain
C. $40,000 loss
D. $60,000 loss
E. $100,000 loss
94. Huffington Company traded in an old delivery truck for a new one. The old truck had a cost of $75,000 and accumulated depreciation of $60,000. The new truck had an invoice price of $125,000. Huffington was given a $12,000 trade-in allowance on the old truck, which meant they paid $113,000 in addition to the old truck to acquire the new truck. What is the recorded value of the new truck?
A. $15,000
B. $75,000
C. $113,000
D. $125,000
E. $128,000
95. A company bought a new display case for $42,000 and was given a trade-in of $2,000 on an old display case, so the company paid $40,000 cash with the trade-in. The old case had an original cost of $37,000 and accumulated depreciation of $34,000. The company should record the value of new display case at:
A. $2,000
B. $3,000
C. $40,000
D. $42,000
E. $43,000
96. A company purchased a machine valued at $66,000. It traded in an old (similar) machine for a $9,000 trade-in allowance, meaning the company paid $57,000 cash with the trade-in. The old machine cost $44,000 and had accumulated depreciation of $36,000. What is the recorded value of the new machine?
A. $8,000
B. $9,000
C. $57,000
D. $65,000
E. $66,000
97. A company purchased equipment valued at $200,000 on January 1. The equipment has an estimated useful life of six years or 5 million units. The equipment is estimated to have a salvage value of $13,400. Assuming the straight-line method of depreciation, what is the depreciation for the second year?
A $41,445.91
B. $62,137.80
C. $31,100.00
D. $55,980.00
E. $33,333.00
98. A company purchased equipment valued at $200,000 on January 1. The equipment has an estimated useful life of six years or 5million units. The equipment is estimated to have a salvage value of $13,400. Assuming the double declining balance method of depreciation, what is the depreciation for the second year?
A $41,445.91
B. $62,137.80
C. $31,100.00
D. $55,980.00
E. $44,442.22
99. A company purchased equipment valued at $200,000 on January 1. The equipment has an estimated useful life of six years or 5million units. The equipment is estimated to have a salvage value of $13,400. Assuming the units of production method of depreciation, what is the annual depreciation for the second year if 1.5 million units were produced?
A $41,445.91
B. $62,137.80
C. $31,100.00
D. $55,980.00
E. $33,333.00
100. A company purchased equipment valued at $200,000 on January 1. The equipment has an estimated useful life of six years or 5million units. The equipment is estimated to have a salvage value of $13,400. Assuming the straight-line method of depreciation, what is the book value at the end of the second year?
A $166,667.00
B. $88,977.80
C. $96,416.25
D. $168,900.00
E. $137,800.00