BUS WEEK 2 QUIZ
Land improvements are depreciable assets.
True
Which of the following is not a depreciable asset?
Land
Expenditures to maintain the operating efficiency and expected productive life of
the unit are expensed as incurred.
True
What is depreciation?
A cost allocation method
Cuso Company purchased equipment on January 1, 2016, at a total invoice cost of
$400,000. The equipment has an estimated salvage value of $10,000 and an
estimated useful life of 5 years. What is the amount of accumulated depreciation at
December 31, 2017, if the straight-line method of depreciation is used?
$156,000
When there is a change in estimated depreciation
current and future years’ depreciation should be revised.
On June 1, 2017, Brislin Company sold some equipment for $22,000. The original
cost was $80,000, the estimated salvage value was $8,000, and the expected useful
Land improvements are depreciable assets.
True
Which of the following is not a depreciable asset?
Land
Expenditures to maintain the operating efficiency and expected productive life of
the unit are expensed as incurred.
True
What is depreciation?
A cost allocation method
Cuso Company purchased equipment on January 1, 2016, at a total invoice cost of
$400,000. The equipment has an estimated salvage value of $10,000 and an
estimated useful life of 5 years. What is the amount of accumulated depreciation at
December 31, 2017, if the straight-line method of depreciation is used?
$156,000
When there is a change in estimated depreciation
current and future years’ depreciation should be revised.
On June 1, 2017, Brislin Company sold some equipment for $22,000. The original
cost was $80,000, the estimated salvage value was $8,000, and the expected useful
