1. An asset with a cost of $45,000 was sold for $9,500 and resulted in a gain of $2,000. How much was accumulated depreciation at the time of sale?

Select one:

$39,500

$37,500

$35,500

$45,000

2. Asset retirement costs are

Select one:

have no effect on a depreciable asset.

treated as a separate asset.

deducted from the cost of a depreciation asset.

added to the cost of a depreciable asset.

3. On July 1, 2022, a machine with a useful life of five years and a residual value of $4,000 was purchased for $20,000. Under straight-line depreciation, what is the depreciation expense for calendar 2023?

Select one:

$4,000

$3,200

$1,600

$3,556