Question

20.

On July 1, 2018, Happy Hound Kennels Inc. sells equipment for $20,000. The equipment originally cost $80,000, had an estimated 5-year life and an expected residual value of $10,000. The Accumulated Depreciation account had a balance of $49,000 on January 1, 2018, using the straight-line method. The gain or loss on disposal is

$4,000 gain.

$4,000 loss.

$11,000 gain.

$11,000 loss.

18

A machine that cost $72,000 has an estimated residual value of $6,000 and an estimated useful life of 5 years or 30,000 hours. Using the units-of-production method, the depreciation expense for the second year, during which the machine was used 5,000 hours, would be

$11,000.

$12,000.

$14,400.

$13,200.

7.Which of the following combinations reflects intangible assets with a finite life?

trademarks and brands

brands and trade names

copyrights and trademarks

copyrights and patents

6.The cost of a finite intangible asset is

amortized, but not tested periodically for impairment.

not amortized, but the asset is tested periodically for impairment.

amortized and tested periodically for impairment.

neither amortized or tested periodically for impairment.

Answer 1

Q20.
Answer is $4000 loss
Explanation:
Sale value				20000
Less: Book value of assets
Cost of assets		80,000
Less: Accumulated dep	56,000	24000
(49000+70000/10)
Loss on sale of assets			-4000
Q18.
Answer is   $ 11,000
Explanation:
Cost of assets		72000
Less: Salvagae		6,000
Depreciable cost		66000
Divide: Units produced	30,000
Depreciation expense per MH	2.2
Multiply: MH used		5,000
Depreciation xpense for year	11000
Q7.
Answer is Copyrights and Patents
Q8
Answer is Amortized and tested periodically for impairment