1. Refer to the information for Cox Inc. above. What amount would Cox record as depreciation expense for 2019 if the units-of-production method were used (Round your answer to the nearest dollar)?
a. $179,400
b. $184,000
c. $218,400
d. $224,000
2. Chapman Inc. purchased a piece of equipment in 2018. Chapman depreciated the equipment on a straight-line basis over a useful life of 10 years and used a residual value of $12,000. Chapman's depreciation expense for 2019 was $11,000. What was the original cost of the building?
a. $98,000
b. $110,000
c. $122,000
d. $134,000
3. Bradley Company purchased a machine for $34,000 on January 1, 2017. It depreciates the machine using the straight-line method over a useful life of 8 years and a $2,000 residual value. On January 1, 2019, Bradley revised its estimate of residual value to $1,000 and shortened the machine's useful life to 4 more years. Depreciation expense for 2019 is:
a. $4,000.
b. $5,750.
c. $6,000.
d. $6,250.