Multiple choice

1) If Ziegler Corporation uses double-declining balance, what is the depreciation expense for Year 3?

A. $20,000

B. $2,222

C. $14,815

D. $18,000

2) Bender Incorporated purchased a photocopier for $3,000. Bender also paid sales tax of $180 and a delivery and installation fee of $200. For accounting purposes, the cost of the photocopier will be recorded as:

A. $3,380

B. $3,000. 

C. $3,180

D. $3,200

3) On December 31, 2010, Halladay Corporation sold an asset that had a cost of $30,000 and accumulated depreciation of $28,000 for $6,000. This transaction results in:

A. A gain of $4,000

B. A loss of $4,000

C. A gain of $6,000

D. A loss of $2,000

4) Book value is equal to:

A. Cost minus residual value

B. Market value minus book value

C. Cost minus accumulated depreciation

D. Depreciable cost