BMAL 530 Reading Quiz 2

Description

• Question 1

 

	What is the amount of double-declining balance depreciation, for year 5, if the cost of an asset is $75,000, the useful life is 5 years, and the salvage value is $4,000.

• Question 2

 

	What type of business entity makes a special election, and is generally created for the public good?

• Question 3

 

	Assume an asset with an original cost of $40,000, $6,000 salvage value, is depreciated using straight-line depreciation over 5 years. After year 2, the salvage value was modified to a $2,000 salvage value, with 5 years of depreciation remaining. What is the new yearly depreciation?

• Question 4

 

	What is the amount of double-declining balance depreciation, for year 1, if the cost of an asset is $75,000, the useful life is 5 years, and the salvage value is $4,000.

• Question 5

 

	What type of business entity is formed when the owners desire to have thousands of owners, raise capital through the sale of stock, has liability protection for its owner, and does not make a special election?

• Question 6

 

	What is the amount of double-declining balance depreciation, for year 3, if the cost of an asset is $75,000, the useful life is 5 years, and the salvage value is $4,000.

• Question 7

 

	What is the amount of straight-line depreciation for year 2 if the useful life of an asset is 5 years, the purchase price is $50,000, and the salvage value is $2,000?

• Question 8

 

	What is the amount of double-declining balance depreciation, for year 2, if the cost of an asset is $75,000, the useful life is 5 years, and the salvage value is $4,000.

• Question 9

 

	What type of business entity has only one owner, and is not distinguishable between the owner and the business entity?

• Question 10

 

	What type of business entity makes a special election, is limited by the number of owners, has only one class of stock, and earnings/losses flow through to its shareholders?