1.

On January 1, 2009, Ocean Co. purchased equipment for $200,000. It is estimated that the equipment will have a $20,000 salvage value at the end of its estimated 4-year useful life. The company uses the double-declining-balance method of depreciation. Depreciation expense for the second calendar year ending on December 31, 2010, would be:

$100,000

$50,000

$45,000

$45,000

2.

Fusion Co. uses the straight-line depreciation method On July 1, 2011, Fusion Co. bought a equipment for $24,000. They estimate the equipment will have a $4,000 salvage value and an 4 year service life. What is the depreciation expense reported for this equipment on the December 31, 2012 income statement?

$7,500

$6,000

$5,000

$4,500

3.

Prious uses the double declining balance depreciation method On January 1, 2011, Prious Co. bought a equipment for $45,000. They estimate the equipment will have a $5,000 salvage value and an 5 year service life. What is the depreciation expense reported for this equipment on the December 31, 2012 income statement?

$18,000

$16,000

$10,800

$9,600

4.

We purchased new equipment for $50,000. We paid $1,000 to have the it delivered and paid $3,000 to setup and install the equipment. During the first month of use, we performed routine maintenance costing $100. What amount is recorded in the equipment account?

$50,000

$51,000

$54,000

$54,100