Acct 2300 Test 4 questions well
answered graded A+ 2025/2026
ABC Company purchases land with an old building, ABC plans to demolish the old building and
then construct a new, modern building. The cost of demolishing the building will be the part of
the cost of the
-old building
-new building
-land
-land improvements - ANS ✔✔land
Gengler Company acquired three pieces of equipment for $1,500,000. Equipment #1 is
appraised at $490,000, equipment #2 is appraised at $640,000, and equipment #3 is appraised
for $630,000. The cost of equipment #1 is:(Do not round any intermediary calculations, and
round your final answer to the nearest dollar.) - ANS ✔✔$417,614
Costs that do NOT extend a plant asset's capacity or its useful life, but merely maintain the asset
or restore it to working order are recorded as:
-capital expenditures
-extraordinary repairs
-modification of assets
-expenses - ANS ✔✔expenses
The book value of a plant asset is defined as:
-historical cost minus estimated residual value
-replacement cost minus accumulated depreciation
-historical cost minus accumulated depreciation
, -current sales value minus historical cost - ANS ✔✔historical cost minus accumulated
depreciation
Cramer Company purchased equipment on May 1, 2019 for $200,000. The residual value is
$20,000 and the estimated useful life is 10 years. What is the Depreciation Expense for the year
ending December 31, 2019, if the company uses the straight-line method? (Round your final
answer to the nearest dollar.)
A) $13,333
B) $12,000
C) $20,000
D) $18,000 - ANS ✔✔$12,000
On January 2, 2019, Saminski, Inc., acquired for $500,000. The estimated life of equipment is 5
years. The estimated residual value is $10,000. What is the Accumulated Depreciation of the
equipment on December 31, 2020, if Saminski used the double declining balance method of
depreciation?
-$120,000
-$196,000
-$200,000
-$320,000 - ANS ✔✔320,000
Kolonas, Inc., sold equipment for $5000n cash. The equipment cost of $74,100 and had
accumulated depreciation through the date of sale of $72,000. At the date of sale, the journal
entry to record the sale will have: - ANS ✔✔Gain on Sale of Equipment for $2900
Remini Company sells equipment for $20,000 cash. The equipment has a historical cost of
$85,000 and accumulated depreciation of $54,000. What is the journal entry to record the sale
of the equipment?
A) debit Cash for $20,000 and credit Gain on Sale of Equipment for $20,000
answered graded A+ 2025/2026
ABC Company purchases land with an old building, ABC plans to demolish the old building and
then construct a new, modern building. The cost of demolishing the building will be the part of
the cost of the
-old building
-new building
-land
-land improvements - ANS ✔✔land
Gengler Company acquired three pieces of equipment for $1,500,000. Equipment #1 is
appraised at $490,000, equipment #2 is appraised at $640,000, and equipment #3 is appraised
for $630,000. The cost of equipment #1 is:(Do not round any intermediary calculations, and
round your final answer to the nearest dollar.) - ANS ✔✔$417,614
Costs that do NOT extend a plant asset's capacity or its useful life, but merely maintain the asset
or restore it to working order are recorded as:
-capital expenditures
-extraordinary repairs
-modification of assets
-expenses - ANS ✔✔expenses
The book value of a plant asset is defined as:
-historical cost minus estimated residual value
-replacement cost minus accumulated depreciation
-historical cost minus accumulated depreciation
, -current sales value minus historical cost - ANS ✔✔historical cost minus accumulated
depreciation
Cramer Company purchased equipment on May 1, 2019 for $200,000. The residual value is
$20,000 and the estimated useful life is 10 years. What is the Depreciation Expense for the year
ending December 31, 2019, if the company uses the straight-line method? (Round your final
answer to the nearest dollar.)
A) $13,333
B) $12,000
C) $20,000
D) $18,000 - ANS ✔✔$12,000
On January 2, 2019, Saminski, Inc., acquired for $500,000. The estimated life of equipment is 5
years. The estimated residual value is $10,000. What is the Accumulated Depreciation of the
equipment on December 31, 2020, if Saminski used the double declining balance method of
depreciation?
-$120,000
-$196,000
-$200,000
-$320,000 - ANS ✔✔320,000
Kolonas, Inc., sold equipment for $5000n cash. The equipment cost of $74,100 and had
accumulated depreciation through the date of sale of $72,000. At the date of sale, the journal
entry to record the sale will have: - ANS ✔✔Gain on Sale of Equipment for $2900
Remini Company sells equipment for $20,000 cash. The equipment has a historical cost of
$85,000 and accumulated depreciation of $54,000. What is the journal entry to record the sale
of the equipment?
A) debit Cash for $20,000 and credit Gain on Sale of Equipment for $20,000
