A company purchased factory equipment for $350,000. It is estimated
that the equipment will have a $35,000 salvage value at the end of its
estimated 5-year useful life. If the company uses the double-declining-
balance method of depreciation, the amount of annual depreciation
recorded for the second year after purchase would be
$84,000.
$140,000.
$126,000.
$60,480.
7- Multiple Choice Question 175
On a balance sheet, natural resources may be described more
specifically as all of the following except
oil reserves.
timberlands.
land improvements.
mineral deposits.
8- Multiple Choice Question 98
On January 1, 2013, Donahue Company, a calendar-year company,
issued $500,000 of notes payable, of which $125,000 is due on January
1 for each of the next four years. The proper balance sheet
presentation on December 31, 2013, is
Current Liabilities, $125,000; Long-term Debt, $375,000.
Current Liabilities, $375,000; Long-term Debt, $125,000.