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Student name:__________
1) On January 1 of this year, SportsWorld purchased a new cash register for $5,400. This
register has a useful life of 10 years and a residual value of $400. Using the double-declining-
balance method, how much depreciation expense should SportsWorld recognize for next year?
A) $500
B) $540
C) $1,000
D) $864
E) $1,080
2) SportsWorld purchased equipment costing $10,000. The equipment has a residual value of
$1,000, and an estimated useful life of 5 years or 36,000 shoes. Actual units produced during the
year were 7,000 units. Calculate the annual depreciation using the straight line method.
A) $1,800
B) $4,000
C) $1,450
D) $2,000
E) $1,750
3) On October 1 of this year, SportsWorld purchased a delivery van for $23,000 with a residual
value of $3,000. The van has an estimated useful life of 5 years. Using straight-line depreciation
and the half-year rule, how much depreciation expense should SportsWorld recognize on
December 31 of this year?
A) $4,600
B) $1,333
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C) $1,465
D) $2,000
E) $4,000
4) SportsWorld uses the straight-line depreciation for a piece of equipment that cost $12,000.
The asset had a trade-in value of $2,000, and a five-year service life. At the end of the third year,
the trade-in value was revised to $1,200 and the useful life increased to a total of 6 years.
Calculate the amount of depreciation expense for each of the remaining years of the asset's useful
life.
A) $1,000
B) $1,467
C) $1,800
D) $1,600
E) $2,160
5) JoyCo acquired equipment on April 1, 2022, at a cost of $90,000 and with an estimated
useful life of 10 years. The machine has a residual value of $10,000. JoyCo uses the double-
declining-balance method of depreciation. How much depreciation should be recorded by JoyCo
for the year ended December 31, 2022?
A) $8,000
B) $9,000
C) $10,000
D) $13,500
E) $12,000
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6) SportsWorld bought a new display case for $12,000 and was given a trade-in of $2,000 on
an old display case. The old case had an original cost of $7,000 and an accumulated depreciation
of $4,000 to the date of trade-in. SportsWorld should record the new display case at:
A) $10,000
B) $10,500
C) $11,500
D) $11,700
E) $12,000
7) At the end of the year, SportsWorld completed an asset impairment test and noted that a
piece of equipment, with a book value of 12,000, has a recoverable value of $2,000. Calculate
the amount of impairment loss on the equipment.
A) $2,000
B) $2,160
C) $14,800
D) $12,800
E) $10,000
8) SportsWorld purchased property for a building site. The costs associated with the property
were:
Purchase Price $175,000
Real Estate Commissions $15,000
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Legal Fees $800
Expense of clearing land $2,000
Expense to remove old building $1,000
What portion of these costs should be allocated to the cost of the land and what portion should
be allocated to the cost of the new building?
A) $150,000 to Land; $18,800 to Building
B) $190,000 to Land; $3,800 to Building
C) $190,800 to Land; $3,000 to Building
D) $192,800 to Land; $1,000 to Building
E) $193,800 to Land; $0 to Building
9) SportsWorld uses straight-line depreciation for a piece of equipment that cost $12,000. The
asset had a salvage value of $2,000, and a five-year service life. At the end of the first year, an
impairment loss of $2,000 was recognized on the asset. Calculate the amount of depreciation
expense for each of the remaining years of the asset's useful life.
A) $1,500
B) $1,600
C) $2,500
D) $1,800
E) $2,000
10) Sports Med sold an X-ray machine that originally cost $100,000 for $60,000. The
accumulated depreciation on the machine to the date of sale was $40,000. On this sale, Sports
Med should recognize:
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Student name:__________
1) On January 1 of this year, SportsWorld purchased a new cash register for $5,400. This
register has a useful life of 10 years and a residual value of $400. Using the double-declining-
balance method, how much depreciation expense should SportsWorld recognize for next year?
A) $500
B) $540
C) $1,000
D) $864
E) $1,080
2) SportsWorld purchased equipment costing $10,000. The equipment has a residual value of
$1,000, and an estimated useful life of 5 years or 36,000 shoes. Actual units produced during the
year were 7,000 units. Calculate the annual depreciation using the straight line method.
A) $1,800
B) $4,000
C) $1,450
D) $2,000
E) $1,750
3) On October 1 of this year, SportsWorld purchased a delivery van for $23,000 with a residual
value of $3,000. The van has an estimated useful life of 5 years. Using straight-line depreciation
and the half-year rule, how much depreciation expense should SportsWorld recognize on
December 31 of this year?
A) $4,600
B) $1,333
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C) $1,465
D) $2,000
E) $4,000
4) SportsWorld uses the straight-line depreciation for a piece of equipment that cost $12,000.
The asset had a trade-in value of $2,000, and a five-year service life. At the end of the third year,
the trade-in value was revised to $1,200 and the useful life increased to a total of 6 years.
Calculate the amount of depreciation expense for each of the remaining years of the asset's useful
life.
A) $1,000
B) $1,467
C) $1,800
D) $1,600
E) $2,160
5) JoyCo acquired equipment on April 1, 2022, at a cost of $90,000 and with an estimated
useful life of 10 years. The machine has a residual value of $10,000. JoyCo uses the double-
declining-balance method of depreciation. How much depreciation should be recorded by JoyCo
for the year ended December 31, 2022?
A) $8,000
B) $9,000
C) $10,000
D) $13,500
E) $12,000
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6) SportsWorld bought a new display case for $12,000 and was given a trade-in of $2,000 on
an old display case. The old case had an original cost of $7,000 and an accumulated depreciation
of $4,000 to the date of trade-in. SportsWorld should record the new display case at:
A) $10,000
B) $10,500
C) $11,500
D) $11,700
E) $12,000
7) At the end of the year, SportsWorld completed an asset impairment test and noted that a
piece of equipment, with a book value of 12,000, has a recoverable value of $2,000. Calculate
the amount of impairment loss on the equipment.
A) $2,000
B) $2,160
C) $14,800
D) $12,800
E) $10,000
8) SportsWorld purchased property for a building site. The costs associated with the property
were:
Purchase Price $175,000
Real Estate Commissions $15,000
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Legal Fees $800
Expense of clearing land $2,000
Expense to remove old building $1,000
What portion of these costs should be allocated to the cost of the land and what portion should
be allocated to the cost of the new building?
A) $150,000 to Land; $18,800 to Building
B) $190,000 to Land; $3,800 to Building
C) $190,800 to Land; $3,000 to Building
D) $192,800 to Land; $1,000 to Building
E) $193,800 to Land; $0 to Building
9) SportsWorld uses straight-line depreciation for a piece of equipment that cost $12,000. The
asset had a salvage value of $2,000, and a five-year service life. At the end of the first year, an
impairment loss of $2,000 was recognized on the asset. Calculate the amount of depreciation
expense for each of the remaining years of the asset's useful life.
A) $1,500
B) $1,600
C) $2,500
D) $1,800
E) $2,000
10) Sports Med sold an X-ray machine that originally cost $100,000 for $60,000. The
accumulated depreciation on the machine to the date of sale was $40,000. On this sale, Sports
Med should recognize:
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