paid $1,180 in the transaction. Prepare the journal entry to record the
exchange.
Question 16
Mehta Company traded a used welding machine (cost $10,080, accum
ulated depreciation $3,360) for office equipment with an estimated fai
r value of $5,600. Mehta also paid $3,360 cash in the transaction. Pre
pare the journal entry to record the exchange.
Question 17
Depreciation is normally computed on the basis of the nearest
A). full month and to the nearest dollar.
B). day and to the nearest cent.
C). day and to the nearest dollar.
D). full month and to the nearest cent.
Question 18
Fernandez Corporation purchased a truck at the beginning of 2012 for
$54,180. The truck is estimated to have a salvage value of $2,580 and
a useful life of 206,400 miles. It was driven 29,670 miles in 2012 and
39,990 miles in 2013. Compute depreciation expense for 2012 and 20
13.
Question 19
Lockhard Company purchased machinery on January 1, 2012, for $79
,200. The machinery is estimated to have a salvage value of $7,920 aft
er a useful life of 8 years.
(a) Compute 2012 depreciation expense using the doubledeclining balance method.
(b) Compute 2012 depreciation expense using the doubledeclining balance method assuming the machinery was purchased on
October 1, 2012.
Question 20
Jurassic Company owns machinery that cost $1,145,700 and has accu
mulated depreciation of $458,280. The expected future net cash flows
from the use of the asset are expected to be $636,500. The fair value
of the equipment is $509,200. Prepare the journal entry, if any, to reco
rd the impairment loss.
Question 21
Everly Corporation acquires a coal mine at a cost of $501,600. Intangi
ble development costs total $125,400. After extraction has occurred,