1. A building was purchased for $240,000 and has a useful life of 30 years, and a residual value of $90,000. After it has been used 5 years, its accumulated depreciation using the straight-line method would be

		a. $12,500
		b. $50,000
		c. $25,000
		d. $40,000

2.

Massachusetts Mining Company purchased a gravel pit for $2,500,000. It is estimated that 5 million tons of gravel can be extracted over the pit's useful life, with a residual value of $700,000. If 4 million tons are extracted and sold during the first year, how much depletion expense should be recorded?

		a. $2,000,000
		b. $1,440,000
		c. $1,800,000
		d. $1,050,000

3. If an asset cost $68,000 and has a residual value of $4,000 and a useful life of five years, the depreciation in the third year, using the double-declining balance method, would be (assume a full year of depreciation in the first year):

		a. $5,625
		b. $9,216
		c. $12,000
		d. $9,792

4. Which of the following would not be charged (debited) to the Vehicles account for the cost of a used car purchase?

		a. tax, title, and registration costs incurred prior to putting the car in use
		b. the cost of an oil change after the car has been in use at our business for 3,000 miles
		c. the purchase price of the car
		d. the cost of having pre-existing bumper damage repaired before putting the car in use