Corporation uses the straight-line method of depreciation? $30,000 $60,000 $112,
ID: 2722112 • Letter: C
Question
Corporation uses the straight-line method of depreciation? $30,000 $60,000 $112,000 $120, 0000 My answer is On January 2, 2015, Kornis Corporation acquired equipment for $300,000. The estimated life of the equipment is 5 years or 40, 000 hours. The estimated residual value is $20, 000. What i8s the balance in Accumulated Depreciation on December 31, 2015. If Kornis Corporation uses the double-declining-balance method of depreciation? $56,000 $60,000 $112,000 $120,000 My answer is: $. On January 4. 2012. Margaret s Cafe acquired equipment for life of the equipment is 4 years or 42.500 hours. The 14 100 hours and uses What is the depreciation for 2012. if Margaret s Cafe uses the asset 14.100 the units-of-production method of depredation? $12,056 $56,400 559.717 $170,000 My answer is: $. Smiley Corporation sold equipment should be prepared? depreciation for $10,000 cash. Which of the ' t for $10.000 debit Cash for $10,000 and credit Gainion Sale-of J P and credit Equipment debit Cash for $5,000, debit Accumulated Depreciation credit Equipment for $5,000 and credit Cain on Sale of Equipment debit Cash for $10.000. debit Accumulated Depreciation for $65,000, credit Equipment for $70.000 2nd credit Gain on Sale of Equipment for $5,000 None of the above is correct answer. On January 1.2015, Benson Company purchases $100,000,6% bonds al a price of 95 and a maturity date of January 1.2020. Benson Company plans to hold the bonds until their maturity date. Interest is paid semiannually, on January 1 and July 1. Benson Company has a calendar year end. The adjusting entry on December 31, 2015 is: debit Cash $3.000 and credit Interest Revenue $3,000. debit Cash $6,000 and credit Interest Revenue $6,000. debit to Interest Receivable $6,000 and credit Interest Revenue $6 000 I don't understand the question; and my classmate doesn't understand either.Explanation / Answer
Calculation of balance in Accumulated depreciation (using double declining balance method ):
Depreciation for the first year formula :
Depreciation = Cost * 2 / life = 300000 * 2 / 5 = $120,000
2015 is the first year of depreciation , hence accumulated depreciations shall be = $120,000