1. A depreciable asset is acquired on the first day of July. The company's year-end is Dec. 31. Assuming the straight line method is used, the depreciation expense taken the first year will be what percentage of a full-year's depreciation?

75%

0%

50%

100%

2. A machine with a cost of $65,000 has an estimated residual value of $5,000 and an estimated life of 5 years or 15,000 hours. It is to be depreciated by the units-of-production method. What is the amount of depreciation for the second full year, during which the machine was used 2,000 hours?

$16,000

$8,000

$21,667

$20,000

3. A plant asset with a cost of $30,000 and accumulated depreciation of $27,500 is sold for $3,500. What is the amount of the gain or loss on disposal of the plant asset?

$2,500 loss

$1,000 gain

$1,000 loss

$2,500 gain

Thank you! Can I get a brief explanation of why is that the correct answer?