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Hunt Limited Applied the Straight-Line Method of Depreciation to Its

Question 13
Multiple Choice

Hunt Limited applied the straight-line method of depreciation to its non-current assets.The cost of the buildings was $850 000,the residual value is $150 000 and the useful life is 10 years.The annual depreciation expense is: A)$100 000. B)$15 000. C)$85 000. D)$70 000.

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Q 14
Webcke Limited acquired an item of machinery with an expected useful life of 4 years.The expected total production output over this period was: year 1,30 000 units; year 2,25 000 units; year 3,15 000 units; year 4,10 000 units.The machinery cost $85 000 and the residual value is $15 000.The amount of depreciation expense recorded in the first year is: A)$26 250. B)$31 875. C)$21 875. D)$17 500.
Q 15
Which of the following depreciation methods is most appropriate when the asset's benefits are expected to be received evenly over its useful life? A)Consistent benefit method B)Straight-line method C)Diminishing balance method D)Unit-of-production method
Q 16
Under AASB 116 Property,Plant and Equipment,the purpose of calculating the depreciation charge for a period on an item of property,plant and equipment is to measure: A)the fall in the fair value of the asset across the period. B)a change in the re-sale value of the asset that has occurred over the period. C)a reduction in the estimated market value of the asset across the period. D)the consumption of economic benefits over the period.
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