1. The cost of a fixed asset minus the asset's residual value equals a depreciable cost. d. a contrasset. b. net book value. e. fair market value. c. annual depreciation expense. 2. Which of the following accounts would provide you with an estimate of the amount of a machine's cost that was used up during the current year? a. Machine (at cost) c. Depreciation Expense b. Accumulated Depreciation d. Net Book Value 3. Three assets, each with a cost of $13,000 and no salvage value, were depreciated using different methods. This resulted in the following amounts of depreciation expense being recorded over the lives of the assets: First Year Second Year Third Year Fourth Year Total Asset One $ 5,200 $ 3,900 $ 2,600 $.1, 300 $3000 Asset Two $ 4,810 $ 1,950 s 1,560 $ 4.680 $13.000 Asset Three $ 3,250 $ 3, 250 $ 3,250 $ 3,250 $20.00 Based on the pattern of yearly expense, which item was most likely depreciated using the units-of-production method? Asset One b. Asset Three Asset Two c. Bulldozer Example - A business buys a bulldozer on the first day of the year for $279.900. The bulldozer is estimated to have a useful life of 9 years and a residual value of $9,900. It will be depreciated using the straight-line method 4. Bulldozer Example - What amount of annual depreciation expense will the company record on this Bulldozer a. $189,900 d. $30,000 b. $31,100 c. $270,000 $0 c 5. Bulldozer Example - After 3 years, what will be the asset's net book value? a. $30,000 d. $186.600 b. $189.900 $93,300 $90,000 e. o