1. On April 1, 2022, a machine was purchased for $33,600. It was estimated that it would have a $3,200 residual value at the end of its 5-year useful life. It was also estimated that the machine would be used for a total of 80,000 hours over the 5 years. If the actual number of machine-hours used in 2022 was 12,000 hours and the company uses the units-of-production method of depreciation, the depreciation expense for 2022 would be

Select one:

$3,780

$3,420

$4,560

$5,040.

2. Which of the following statements is incorrect?

Select one:

Reversals of revaluation gains or write-ups are prohibited.

Under the revaluation model, the carrying amount of property, plant and equipment is adjusted to reflect its fair value.

With the revaluation model, revaluation gains are recorded in Other Comprehensive Income.

Companies can choose to use the cost model or the revaluation model for property, plant and equipment.

3. On April 1, 2022, Check Mate Ltd. places a new asset into service. The cost of the asset is $40,000 with an estimated 8-year life and $2,500 residual value. Assuming that Check Mate uses the double diminishing-balance method of depreciation, what is the carrying amount of the asset at December 31, 2022?

Select one:

$35,000

$30,625

$32,500

$38,125