6. ____ Ward Inc. owns Equipment with cost of $30,000 and accumulated depreciati
ID: 2469360 • Letter: 6
Question
6. ____ Ward Inc. owns Equipment with cost of $30,000 and accumulated depreciation of $19,000. The Equipment is sold for $14,000 cash. Which of the following is true? a. Gain on Disposal will be debited for $3,000 b. Loss on Disposal will be credited for $1,000 c. Loss on Disposal will be debited for $1,000 d. Gain on Disposal will be credited for $3,000.
7. ____ Lemming acquired a building for $60,000 that is estimated to last for 20 years. Lemming depreciates the building on a straight line basis, with no salvage value. The book value of the building after 5 years will be: a. $60,000 b. $55,000 c. $45,000 d. the same as the market value of the building
8. ____ Who pays unemployment taxes? A. employee only b. employer and employee c. employer only d. neither employer nor employee
9. ____ A newly appointed payroll manager should obtain a copy of: a. “Learning Payroll by Trial and Error” b. Fifty Shades of Accounting c. IRS Publication 15 Circular E d. “Payroll—an Exciting Career Choice for the 1980s”
10. ____ Nell uses double declining balance depreciation. How much depreciation should Nell record in year one on Equipment with a cost of $9,000, salvage value of $1,000 and life of 5 years? A. $1600 b. $3200 c. $1800 d. $3600
Explanation / Answer
(6) Ward Inc has Net Balance after depreciation onf $11000 whereas It sells at $14000 so the Gain on disposal of $3000 Will be credited.
(7) Building is depreciated on Straight Line basis with no salvage value hence the depreciation per year will be $3000. After 5 Years the Book value of hte Building will be $60,000-(5*3000)= $45,000.
(8) Employer has to pay unemployment taxes.
(9) A newly appointed payroll manager should obtain copy of IRS publication 15 circular E.
(10) Nell Should record $3600 depreciation in Year-1 on Equipment.
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.