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Depreciation & Salvage Values Chapter Exam

Exam Instructions:

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

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Question 1 1. Thomas bought an expensive suit at a discount price of $426. The life expectancy of the suit is 10 years. Using the straight-line depreciation method, what will be the value of the suit in 3 years?

Question 2 2. Paula purchased a grill for $3,000. It was used for 300 units in year 1, and an additional 700 units in year 2. Why are we unable to calculate the value using the units of production depreciation method?

Question 3 3. Rachel owns a media conglomerate. She purchased a printing press for $38,000 with a lifespan of 190,000 hours. Her employees used the printing press 20,000 hours the first year, while they used it 30,000 hours in the second year. Using the units of production method of depreciation, what is the value of the printing press after year 2?

Question 4 4. Jamie has bought an expensive oven for $45,000. The oven is supposed to be able to bake 400,000 units in its lifetime. In the first year, they baked 20,000 units. Using the units of production depreciation method, what is the depreciation for year 1?

Question 5 5. Karol bought a laptop for $1,400 with a life expectancy of 7 years. Using the straight-line depreciation method, what will be the value of the laptop in 5 years?

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Question 6 6. John owns a manufacturing company. He bought an assembly line which costs $45,000 with a life expectancy of 9 years. Using the straight-line depreciation method, what will be the value of the assembly line in one year?

Question 7 7. Tina owns a hostel in a large town. She bought a copy machine for $1,700, which has a life expectancy of 40,000 units. In the first year, Tina and her staff copied 800 units. In the second year, they copied 900 units, and in the third year they copied 1,400 units. Using the units of production method of depreciation, what is the value of the copy machine after year 3?

Question 8 8. George has bought a printer for his office for $456. It has a life expectancy of 5 years. Using the straight-line depreciation method, what is the value of the printer at the end of the calendar year, if George has owned it for 6 months?

Question 9 9. Ken purchased a camera for $300 with a lifespan of 10 years. Using the straight-line depreciation method, what is the value of the camera at the end of the calendar year, if Ken has owned it for only 2 months?

Question 10 10. Karl bought a drilling machine for $8,000. The expected life expectancy of the machine is 5 years. Using the double declining balance method, how much is the depreciation for year 1?

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Question 11 11. Hana purchased a copy machine which is worth $3,600 with a lifespan of 9 years. Using the years' digits method of depreciation, what is the value of the copy machine after year 1?

Question 12 12. James bought a pickup truck for his business for $135,000 with a lifespan of 10 years. Using the years' digits method of depreciation, what is the depreciation for year 2?

Question 13 13. Jennifer bought a set of tools for basic home repairs for $180 with a life expectancy of 10 years. Using the double declining balance method, what is the value of the tools after year 2?

Question 14 14. Rob is a taxi driver in New York. He purchased his car for $12,000 with a ten-year lifespan. Using the double declining balance method, what is the value after year 2?

Question 15 15. Harrison purchased a printer for his company for the costs of $1,300. The life expectancy of the printer is 4 years. Using the double declining balance depreciation method, what will be the value of the printer in a year?

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Question 16 16. Using the sum of the years' digits method, calculate the depreciation for year 1 of a printer purchased for $20,000 with a life expectancy of 3 years.

Question 17 17. Use the double declining balance method to calculate the depreciation amount for year 2 of a printer purchased for $40,000 with a life of 10 years.

Question 18 18. Use the sum of the years' digits method to calculate the depreciation percentage for year 4 for a printing press purchased for $150,000 with a life of 20 years.

Question 19 19. You are a professional food photographer. The camera you use for your work cost you $10,000. It has a life expectancy of 20 years. What is your annual depreciation?

Question 20 20. Which report gives you the depreciation for just one month?

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Question 21 21. The camera you use for work cost you $10,000 to purchase. With a life expectancy of 20 years, what is the depreciation amount on the balance sheet after 4 years?

Question 22 22. A printer worth $30,000 with a life expectancy of 5 years has a yearly depreciation of what using the straight-line depreciation method?

Question 23 23. A single-serve coffee machine worth $30,000 can make 60,000 cups of coffee in its life. Using the units of production depreciation method, what is the depreciation for the year where 5,000 cups of coffee were made?

Question 24 24. A camera with a value of $20,000 has a life expectancy of 20 years. What is the percentage each year that you can take using the straight-line depreciation method?

Question 25 25. The full year depreciation of a mobile phone is $450. What is the partial-year depreciation of the item if it was owned for only 4 months?

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Question 26 26. What is the full year depreciation for a car that was purchased for $20,000 with a life expectancy of 20 years?

Question 27 27. A printer was purchased for $20,000 with a life expectancy of 20 years. What is the depreciation for year 1 if you purchased it in May?

Question 28 28. A computer has a life expectancy of 3 years. Use the sum of the years' digits method to calculate the depreciation percentage for year 2.

Question 29 29. A hybrid car used for work was bought for $30,000 with a life expectancy of 10 years. What is the depreciation amount you put in your monthly income statement?

Question 30 30. A photocopier has a value of $2,000 and a life of 5 years. What is the percentage depreciation each year using the double declining balance method?

Depreciation & Salvage Values Chapter Exam Instructions

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

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