1. A company purchased a delivery van for $23,000 with a salvagevalue of $3,000 on September 1, 2009. It has an estimated usefullife of 5 years. Using the straight-line method, how muchdepreciation expense should the company recognize on December 31,2009?

A) $1,000.

B) $1,333.

C) $1,533.

D) $4,000.

E) $4,600.

2. A company purchased a POS cash register on January 1 for$5,400. This register has a useful life of 10 years and a salvagevalue of $400. What would be the depreciation expense for thesecond-year of its useful life using thedouble-declining-balance method?

A) $ 500.

B) $ 800.

C) $ 864.

D) $1,000.

E) $1,080.

3. A company purchased a rope braiding machine for $190,000. Themachine has a useful life of 8 years and a residual value of$10,000. It is estimated that the machine could produce 750,000units of climbing rope over its useful life. In the first year,105,000 units were produced. In the second year, productionincreased to 109,000 units. Using the units-of-production method,what is the amount of depreciation that should be recorded for thesecond year?

A) $25,200.

B) $26,160.

C) $26,660.

D) $27,613.

E) $53,160.

4. Extraordinary repairs:

A) Are revenue expenditures.

B) Extend an asset's useful life beyond its originalestimate.

C) Are credited to accumulated depreciation.

D) Are additional costs of plants assets that do not materiallyincrease the asset's life.

E) Are expensed as incurred.