1. True or False: On January 1 of the current year, a company purchased a plant asset for $120,000. The asset has an estimated salvage value of $16,000, and an estimated useful life of 8 years. Depreciation expense in the first year using the double-declining-balance method is $30,000.

2. Lima Enterprises purchased a depreciable asset for $25,500 on April 1, Year 1. The asset will be depreciated using the straight-line method over its four-year useful life. Assuming the asset's salvage value is $2,700, Lima Enterprises should recognize depreciation expense in Year 2 in the amount of:

3. A machine originally had an estimated useful life of 5 years, but after 2 complete years, it was decided that the original estimate of useful life should have been 10 years. At that point the remaining cost to be depreciated should be allocated over the remaining:

4. An asset's book value is $19,300 on December 31, Year 5. The asset has been depreciated at an annual rate of $4,300 on the straight-line method. Assuming the asset is sold on December 31, Year 5 for $16,300, the company should record: