• #### 1.  Daniel’s Print Shop purchased a new printer for $35,000. Each year it depreciates at a rate of 5%. How much will the printer be worth in 8 years? •$23,219.72
• $136.72 •$51,710.94
• $16,710.94 • #### 2. The tax rate used to calculate property taxes. • loss on plant asset • plant asset record • salvage value • milage rate • #### 3. An accounting form on which a business records information about each plant asset. • salvage value • units-of-production method • plant asset record • loss on plant asset • #### 4. Ashley's parents bought a house in 2009 for$118,000. The home's value increases at a rate of 9% annually. How much will the house be worth in 2018? In 2020?

• $256,283;$304,490
• $280,778;$304,490
• $256,283;$374,505
• $190,245;$225,680
• #### 5.  Your shiny new boat cost $7650. The depreciation for your boat is 14% per year. Estimate the value of your vehicle in 3 years. What is the equation that models this problem? • y= 7650(.14)3 • y= 7650(.86)3 • y= 7650(1+.86/1)3*1 • #### 6. The original cost of a plant asset minus accumulated depreciation. • assessed value • half-year convention • current asset • book value of a plant asset • #### 7. A method that recognizes a full year's depreciation if the asset is acquired in the first half of the year. • modified half-year convention • straight-line-depreciation • salvage value • units-of-production method • #### 8. The value of an asset determined by tax authorities for the purpose of calculating taxes. • assessed value • book value of a plant asset • depletion • gain on plant asset • #### 9. All property not classified as real property. • personal property • real property • salvage value • units-of-production method • #### 10. The decrease in the value of a plant asset because of the removal of a natural resource. • salvage value • loss on plant asset • depletion • gain on plant asset • #### 11. Land and anything attached to it; also called real estate. • assessed value • real property • personal property • units-of-production method • #### 12. Salem has a population of 15,000 and depreciates at a rate of 8% per year. What is the exponential equation? • P = 15,000(-.92)t • P=15,000(1.08)t • P=15,000(0.92)t • P=15,000(.08)t • #### 13. The amount that will be received for an asset at the time of its disposal. • straight-line-depreciation • units-of-production method • assessed value • salvage value • #### 14. Which fixed asset is LEAST likely to lose its value over time? • land • equipment • buildings • new delivery van • #### 15. Which of these produces higher amounts of depreciation expense in the early years of the life of an asset? • Straight Line Method • Declining Balance Method • Sum-of-the-Years Digits • Units-of-Production • #### 16. A depreciation method required by the Internal Revenue Service to be used for income tax calculation purposes for most plant assets. • units-of-production method • Modified Accelerated Cost Recovery System (MACRS) • personal property • straight-line-depreciation • #### 17. What type of asset is a bulldozer? • Current Asset • Property, Plant, & Equipment Asset • Intangible Asset • #### 18. A method that recognizes one half of a year's depreciation in the year of acquisition. • personal property • straight-line-depreciation • modified half-year convention • half-year convention • #### 19. Revenue that results when a plant asset is sold for more than book value. • gain on plant asset • loss on plant asset • salvage value • plant asset record • #### 20. The loss of an asset's value is... • depreciation • data processing • book value • liability value • #### 21. Calculating the estimated annual depreciation expense based on the amount of production expected from a plant asset. • units-of-production method • declining-balance-depreciation • straight-line-depreciation • salvage value • #### 22. The only long-term asset that does not depreciate is: • Land Improvements • Land • Building • Trademarks • #### 23. A population of fish starts at 8,000 and decreases by 6% per year. What is the population of fish after 10 years? • 14327 • 4309 • 839 • 7680 • #### 24. Because of land’s permanent nature, it is not subject to depreciation. • True • False • #### 25. A milling machine was bought for$200,000 and has accumulated depreciation of $65,000. On February 20th, the company disposed of the machine receiving nothing in return. How would you record the loss on the disposal of the milling machine? •$65,000
• $70,000 •$135,000
• No loss on the disposal

• y=5000(0.7)x
• y=30(5000)x
• y=5000(1.3)x
• y=5000xx
• #### 27.  The original cost of a plant asset minus accumulated depreciation. (p. 451)

• current assets
• plant assets
• salvage value
• book value of a plant asset
• #### 28.  Cash and other assets expected to be exchanged for cash or consumed within a year.

• loss on plant asset
• current asset
• gain on plant asset
• modified half-year convention
• #### 29.  The loss that results when a plant asset is sold for less than book value.

• salvage value
• loss on plant asset
• units-of-production method
• real property
• #### 30.  Recording an equal amount of depreciation expense for a plant asset in each year of its useful life.

• units-of-production method
• straight-line-depreciation
• salvage value
• real property
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