CM 2113 Test 1 - Chao Wang, 2113 Exam 1 Multiple Choice ACTUAL
EXAM 2026/2027 AND HIGH YIELD PRACTICE QUESTIONS
COMPLETE ACCURATE EXAM APPROVED QUESTIONS AND CORRECT
VERIFIED SOLUTIONS (100% CORRECT VERIFIED ANSWERS)
CURRENTLY UPDATED VERSION 2026 EDITION |GUARANTEED PASS
_ ____ is an artificial expense of an estimated loss that can offset income
taxes over a period of
years.
Select one:
a. Operating Expenses
b. Tire Replacement
c. Depreciation
d. Loss
ANSWERS: c. Depreciation
A grader has an initial cost of $220,000 and an estimated useful life of 10
years. The salvage value after 10 years of use is estimated to be $25,000.
What is the book value at the end of the first
year if the straight-line method of depreciation
accounting is used? Select one:
a. $25,000
b. $44,500
c. $19,500
d. $200,500
ANSWERS: d. $200,500
The contractor purchased the tractor for $220,000 and anticipates a
salvage value of $25,000 after 5 years of use. What is the annual
depreciation amount in the 3rd year if the sum-of-the-years method
of depreciation accounting is used?
Select one:
a. $39,000
b. $26,000
c. $52,000
d. $65,000
ANSWERS: $39,000
,The contractor purchased the tractor for $220,000 and anticipates a
salvage value of $25,000 after 5 years of use. What is the annual
depreciation amount in the 2nd year if the double
declining-balance method of depreciation
accounting is used? Select one:
a. $52,800
b. $19,008
c. $88,000
d. $31,680
ANSWERS: $52,800
A grader has an initial cost of $220,000 and an estimated useful life of
10 years. The salvage value after 9 years of use is estimated to be
$25,000. What is the book value at the end of the 10th year if the
MACRS method of depreciation accounting is used?
Select one:
a. $19,500
b. $0
c. $7,216
d. $25,000
ANSWERS: b. $0
, The contractor purchased the tractor for $220,000 and anticipates a
salvage value of $25,000 after 5 years of use. What is the book value
at the end of the 1st year if the double declining-balance method of
depreciation accounting is used?
Select one:
a. $132,000
b. $79,200
c. $28,512
d. $47,520
ANSWERS: $132,000
Equipment depreciation is a/an _.
Select one:
a. Ownership Cost
b. Operating Cost
ANSWERS: Ownership Cost
Equipment maintenance and repair is a/an _.
Select one:
a. Ownership Cost
b. Operating Cost
ANSWERS: Operating Cost
Equipment service is a/an _.
Select one:
a. Ownership Cost
b. Operating Cost
ANSWERS: Operating Cost
Equipment storage is a/an _.
Select one:
a. Operating Cost
b. Ownership Cost
ANSWERS: Ownership Cost
EXAM 2026/2027 AND HIGH YIELD PRACTICE QUESTIONS
COMPLETE ACCURATE EXAM APPROVED QUESTIONS AND CORRECT
VERIFIED SOLUTIONS (100% CORRECT VERIFIED ANSWERS)
CURRENTLY UPDATED VERSION 2026 EDITION |GUARANTEED PASS
_ ____ is an artificial expense of an estimated loss that can offset income
taxes over a period of
years.
Select one:
a. Operating Expenses
b. Tire Replacement
c. Depreciation
d. Loss
ANSWERS: c. Depreciation
A grader has an initial cost of $220,000 and an estimated useful life of 10
years. The salvage value after 10 years of use is estimated to be $25,000.
What is the book value at the end of the first
year if the straight-line method of depreciation
accounting is used? Select one:
a. $25,000
b. $44,500
c. $19,500
d. $200,500
ANSWERS: d. $200,500
The contractor purchased the tractor for $220,000 and anticipates a
salvage value of $25,000 after 5 years of use. What is the annual
depreciation amount in the 3rd year if the sum-of-the-years method
of depreciation accounting is used?
Select one:
a. $39,000
b. $26,000
c. $52,000
d. $65,000
ANSWERS: $39,000
,The contractor purchased the tractor for $220,000 and anticipates a
salvage value of $25,000 after 5 years of use. What is the annual
depreciation amount in the 2nd year if the double
declining-balance method of depreciation
accounting is used? Select one:
a. $52,800
b. $19,008
c. $88,000
d. $31,680
ANSWERS: $52,800
A grader has an initial cost of $220,000 and an estimated useful life of
10 years. The salvage value after 9 years of use is estimated to be
$25,000. What is the book value at the end of the 10th year if the
MACRS method of depreciation accounting is used?
Select one:
a. $19,500
b. $0
c. $7,216
d. $25,000
ANSWERS: b. $0
, The contractor purchased the tractor for $220,000 and anticipates a
salvage value of $25,000 after 5 years of use. What is the book value
at the end of the 1st year if the double declining-balance method of
depreciation accounting is used?
Select one:
a. $132,000
b. $79,200
c. $28,512
d. $47,520
ANSWERS: $132,000
Equipment depreciation is a/an _.
Select one:
a. Ownership Cost
b. Operating Cost
ANSWERS: Ownership Cost
Equipment maintenance and repair is a/an _.
Select one:
a. Ownership Cost
b. Operating Cost
ANSWERS: Operating Cost
Equipment service is a/an _.
Select one:
a. Ownership Cost
b. Operating Cost
ANSWERS: Operating Cost
Equipment storage is a/an _.
Select one:
a. Operating Cost
b. Ownership Cost
ANSWERS: Ownership Cost
