1.On January 1, 20x1 Buckle Co. purchased a machine that had a list price of 46,320. Buckle Co. paid cash of 18,000 and executed a one-year non-interest-bearing note for the balance. The going rate of interest was 18%. The machine has a 6-year life and no residual value. Depreciation expense on the SYD basis at the end of 20x1 is:

1. 8,092
2. 12,000
3. 13,234
4. 14,690

The next four items are based on the following information:

Dirt Corporation schedule of depreciable assets at December 31, 20X7 was as follows:

Asset Cost Accum. Depreciation Acquisition date Residual value

A 100,000 64,000 20X6 20,000

B 55,000 36,000 20X5 10,000

C 70,000 33,600 20X5 14,000

Dirt takes a full year's depreciation expense in the year of an asset's acquisition, and no depreciation expense in the year of an asset's disposition. The estimated useful life of each depreciable asset is 5 years.

2.Dirt depreciates asset A on the double-declining-balance method. How much depreciation expense should Dirt record in 20X8 for asset A?

a.32,000

b.25,600

c.14,400

d.6,400

3.Dirt depreciates asset A on the double-declining-balance method. How much depreciation expense should Dirt record in 20X9 for asset A?

a. 2,000

b. 5,600

c. 1,600

d. 8,640

4.Using the same depreciation method as used in 20X5, 20X6, and 20X7, how much depreciation expense should Dirt record in 20X8 for asset B?

a.6,000

b.9,000

c.11,000

d.12,000

5.Dirt depreciates asset C by the straight-line method. On June 30, 20X8, Dirt sold asset C for 28,000 cash. How much gain (loss) should Dirt record in 2008 on the disposal of asset C?

a.2,800

b.(2,800)

c.(5,600)

d.(8,400)