1. The depreciation method that applies a constant percentage to depreciable cost in calculating depreciation is a. Straight-line b. . Units-of activity. Declining-balance None of these. d. 2. A factory machine was purchased for $25,000. on January 1 3 blo It was estimated that it would have a $5,000. salvage value at the end of its S-ycar useful life. It was also estimated that the machine would be run 40,000 hours in the 5 years. If the actual number of machine hours ran in a ol 6vas 4,000 hours and the o ompany uses the units-ofactivity method of depreciation, the amount of depreciation expense for 2ol6 would be. $2,500 $4,000. $5,000 $2,000. b. C. d. Two companies report the same cost of goods available for sale but each employs a different inventory costing method. If the price of goods has increased during the period, then the company using 3. a. LIFO will have the highest ending inventory b. FIFO will have the highest cost of good sold. c. FIFO will have the highest ending inventory. d. LIFO will have the lowest cost of goods sold. 4. Jeff's Copy Shop bought equipment for S2 4,000 on January 1, 0/C Jeff estimated the usoful life to be 3 years with no salvage value, and the straight-line method of depreciation will be used. On January 1, 2o07 Jeff decides that the business will use the equipment for 5 years. What is the revised depreciation expense for 2 al73 a. $8,000. b. $3,200. c. $4,000. d. $6,000