GB 518 Course Great Wisdom / tutorialrank.com GB 518 Course Great Wisdom / tutorialrank.com | Page 38

Question 5. Question :
Cardco Inc. has an annual accounting
period which ends on December 31. During the current year a
depreciable asset which cost $42,000 was purchased on September
2. The asset has a $4,000 estimated salvage value. The company uses
straight-line depreciation and expects the asset to have a 5 year life.
What is the total depreciation expense for the current year?
$1,900.00

$7,600.00

$2,533.33
$2,800.00
$3,166.67
Question 6.

Question :

A copyright:

Gives its owner the exclusive right to publish
and sell a musical or literary work during the life of the creator plus
70 years
Is an exclusive right granted to its owner to
manufacture and sell a device or to use a process for 17 years
Is an exclusive right granted to its owner to
manufacture and sell a device or to use a process for 50 years
Is the amount by which the value of a company
exceeds the fair market value of a company's net assets if purchased
separately