Libby is considering selling cupcakes from a food truck and began to think about the equipment she would need to run a food truck. Determine which of the following would be a long-term asset.

A.)

Mixers

B.)

Hats

C.)

Propane for generator

D.)

Baking ingredients

Ann began a list of the additional equipment she would need to run the food truck for her company, Sweet Tooth. She would need mixers that fit on the truck, baking ingredients that were stable in the summer heat, a rented parking space downtown on Foodtruck Row, and of course, the food truck.

Which of the following assets is NOT depreciable?

A.)

Property on which store is located

B.)

Food truck

C.)

Mixers

D.)

Baking ingredients

Paul wanted to calculate the depreciation of the computer server his company purchased for $6,000. He decided that the useful life of the server would be three years. Paul also determined that the residual value of the server would be $300.

Paul calculated the annual straight line depreciation of the server would be .

A.)

$2,000

B.)

$2,100

C.)

$1,800

D.)

$1,900

The machine that was used to produce notebooks cost $750,000 when it was purchased new one year ago. It has an expected life span of 10 years. The income statement showed the straight line deprecation rate as 10%.

Using double declining balance depreciation, the book value of the machine at the end of year two is .

A.)

$150,000

B.)

$600,000

C.)

$480,000

D.)

$330,000

Consider the following information for a machine:

Cost = $15,000

Residual Value = $3,000

Useful Live = 5 years

Using straight line depreciation, what would the monthly amount of depreciation be?

A.)

$300

B.)

$2,400

C.)

$1,200

D.)

$200

LONG TERM ASSET

ASSET: TRACTOR

Based on the information above, the book value of the tractor is .

A.)

$43,000

B.)

$33,000

C.)

$28,000

D.)

$25,000

A gain or loss may be incurred if the sale or trade of an asset is greater than or less than the value of the asset.

A.)

cash

B.)

cost average

C.)

depreciation

D.)

carrying

*These are accounting questions**