1.

a.Mohr Company purchases a machine at the beginning of the year at a cost of $34,000. The machine is depreciated using the double-declining-balance method. The machines useful life is estimated to be 5 years with a $8,000 salvage value. The machines book value at the end of year 2 is:

Multiple Choice

• $15,600.

• $11,600.

• $13,600.

• $12,240.

  • $20,400

    B. Mohr Company purchases a machine at the beginning of the year at a cost of $34,000. The machine is depreciated using the units-of-production method. The company estimates it will use the machine for 5 years, during which time it anticipates producing 52,000 units. The machine is estimated to have a $8,000 salvage value. The company produces 9,800 units in year 1 and 6,800 units in year 2. Depreciation expense in year 2 is

C. Mohr Company purchases a machine at the beginning of the year at a cost of $39,000. The machine is depreciated using the straight-line method. The machines useful life is estimated to be 5 years with a $5,000 salvage value. Depreciation expense in year 2 is: