1) Zinger Inc. has a delivery truck which originally cost $23,000. It has a residual value of $5,000. The truck has a total life of 9 years, and was purchased 3 years ago. This year, the truck was used from January 1 until March 31. On April 1, the truck was sold.

If Zinger uses the straight-line method, what is the depreciation expense on the truck for this year (the year of sale)?

$500

$666

$1,500

$2,000

2) Vanguard Corp. purchased machinery with a cost of $470,000 on January 1, 2020. The machinery had a useful life of 5 years and a residual value of $30,000.

The machinery was expected to produce 150,000 units over its life. In 2020 and 2021, it produced 24,000 and 60,000 units, respectively.

What is the net book value of the machinery at December 31, 2021, using the straight-line method?

$88,000

$176,000

$294,000

$470,000