Question
1. Mohr Company purchases a machine at the beginning of the year at a cost of $35,000. The machine is depreciated using the straight-line method
1. Mohr Company purchases a machine at the beginning of the year at a cost of $35,000. The machine is depreciated using the straight-line method. The machines useful life is estimated to be 4 years with a $4,000 salvage value. Depreciation expense in year 2 is:
2. Mohr Company purchases a machine at the beginning of the year at a cost of $43,000. The machine is depreciated using the straight-line method. The machines useful life is estimated to be 5 years with a $7,000 salvage value. The book value of the machine at the end of year 2 is:
3. Mohr Company purchases a machine at the beginning of the year at a cost of $33,000. 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 45,000 units. The machine is estimated to have a $6,000 salvage value. The company produces 9,900 units in year 1 and 6,900 units in year 2. Depreciation expense in year 2 is:
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