1. Flounder Corp. bought equipment on January 1, 2017. The equipment cost $440000 and had an expected salvage value of $30000. The life of the equipment was estimated to be 6 years. The depreciation expense using the straight-line method of depreciation is _

a) $78333

b) $88000

c) $68333

d) none

2) A company purchased land for $84800 cash. Real estate brokers' commission was $3100 and $8100 was spent for demolishing an old building on the land before construction of a new building could start. Proceeds from salvage of the demolished building was $1300. Under the historical cost principle, the cost of land would be recorded at _

a) $91600

b) $96000

c) $94700

d) $84800

3) Crane Company purchases a new delivery truck for $84000. The sales taxes are $3200. The logo of the company is painted on the side of the truck for $1900. The trucks annual license is $170. The truck undergoes safety testing for $270. What does Crane record as the cost of the new truck?

a) $87200

b) $87370

c) $89450

d) $89370

4) Machinery was purchased for $500000. Freight charges amounted to $13000 and there was a cost of $30000 for building a foundation and installing the machinery. It is estimated that the machinery will have a $50000 salvage value at the end of its 5-year useful life. Depreciation expense each year using the straight-line method will be

a) $108600

b) $98600

c) $90000

d) $91400

5) A company purchased factory equipment on April 1, 2017, for $156000. It is estimated that the equipment will have a $12000 salvage value at the end of its 10-year useful life. Using the straight-line method of depreciation, the amount to be recorded as depreciation expense at December 31, 2017, is

a) $15600

b) $10800

c) $11700

d) $14400