2. A machine was purchased on the 1^st of January 2016 at a cost of $490,000. The cost of installation is $10,000. The estimated residual value of the machine at the end of its useful life is $50,000 and the service life of the asset is estimated to be 5 years. The company used the Double Declining Balance Method to calculate the depreciation expense during the useful life of the machine.

If the company used Straight line method to calculate the depreciation Expense for the machine, the Accumulate Depreciation reported on December 31st,2017 will be:

a.

$450,000

b.

$9,000

c.

$482,000

d.

$18,000

If the company used Straight line method to calculate the depreciation Expense for the machine, the Book Value on December 31st,2018 will be:

a.

None of the given options

b.

$27,000

c.

$423,000

d.

$473,000

he Straight-Line rate for the machine purchased on January 1st,2016 is:

a.

50%

b.

25%

c.

40%

d.

20%

The depreciable cost of the machine during its useful life is:

a.

$50,000

b.

$490,000

c.

$450,000

d.

$500,000

Under Straight-Line method (SLM), the book value of the asset at the end of the useful life should be equal to:

a.

None of the given options

b.

Asset cost

c.

Depreciable cost

d.

Salvage value