13. Which is NOT a method of depreciation? a) straight-line. b) diminishing-balance. c) specific-identification. d) units-of-production. 14. The balance in the accumulated depreciation account represents the: a) cash fund to be used to replace long-lived assets. b) amount to be deducted from the cost of the long-lived asset to arrive at its fair value. c) amount charged to expense in the current period. d) amount charged to expense since the acquisition of the long-lived asset. 15. Equipment was purchased for $ 15,000. Freight charges amounted to $ 700, and there was a cost of $ 2,000 for building a foundation and installing the equipment. It is estimated that the equipment will have a $3,000 residual value at the end of its 5-year useful life. Depreciation expense each year using the straight-line method will be: a) $ 3,540. b) $ 2,940. c) $ 2,460. d) $ 2,400. 16. A company purchased a delivery truck for $ 60,000. It is estimated that the truck will have a $ 10,000 residual value at the end of its estimated 5-year useful life. If the company uses the double diminishing-balance method of depreciation, the amount of annual depreciation recorded for the second year after purchase would be: a) $ 9,600. b) $ 24,000. c) $ 14,400. d) $ 12,000. 17. A factory machine was purchased for $ 20,000 on March 1, 2021. It was estimated that it would have a $ 4,000 residual value at the end of its 5-year useful life. It was also estimated that the machine would be run 25,000 hours in the 5 years. If the actual number of machine hours run in 2021 was 4,000 hours and the company uses the units- of-production method of depreciation, the amount of depreciation expense for 2021 would be: a) $2,133. b) $ 2,560. c) $ 3,200. d) $ 4,000