111. A company purchased factory equipment on June 1, 2008, for $48,000. It is estimated that the equipment will have a $3,000 salvage value at the end of its 10-year useful life. Using the straight-line method of depreciation, the amount to be recorded as depreciation expense at December 31, 2008, is

a. $4,500.

b. $2,625.

c. $2,250.

d. $1,875.

112. A plant asset was purchased on January 1 for $40,000 with an estimated salvage value of $8,000 at the end of its useful life. The current year's Depreciation Expense is $4,000 calculated on the straight-line basis and the balance of the Accumulated Depreciation account at the end of the year is $20,000. The remaining useful life of the plant asset is

a. 10 years.

b. 8 years.

c. 5 years.

d. 3 years.

Use the following information for questions 113115.

Brinkman Corporation bought equipment on January 1, 2008. The equipment cost $90,000 and had an expected salvage value of $15,000. The life of the equipment was estimated to be 6 years.

113. The depreciable cost of the equipment is

a. $90,000.

b. $75,000.

c. $50,000.

d. $12,500.

114. The depreciation expense using the straight-line method of depreciation is

a. $17,500.

b. $18,000.

c. $12,500.

d. none of the above.

115. The book value of the equipment at the beginning of the third year would be

a. $90,000.

b. $75,000.

c. $65,000.

d. $25,000.

116. Baden Company purchased machinery with a list price of $32,000. They were given a 10% discount by the manufacturer. They paid $200 for shipping and sales tax of $1,500. Baden estimates that the machinery will have a useful life of 10 years and a residual value of $10,000. If Baden uses straight-line depreciation, annual depreciation will be

a. $2,050.

b. $2,036.

d. $3,050.

d. $1,880.