27. The book value of an asset is equal to the a asset's market value less its historica b. blue book value relied on by secondary mark c. replacement cost of the asset dasset's cost less accumulated depreciation. ets 28. In computing depreciation, salvage value is a. the fair market value of a plant asset on the date ot acquisition b. subtracted from accumulated depreciation to determine the plant asset's depreciable cost. c an estimate of a plant asset'a value at the end of its useful life d. ignored in all the depreciation methodas 29. A company purchased factory equipment on April 1, 2002 for $40, 000. e is estimated that the equipment will have a $5,000 salvage value at the end of its 10-year useful life. Using the straight-1ine method of depreciation, the amount to be recorded as depreciation expense at December 31, 2002 is a. $4,000 b. $3,500. C. $2,625 d. $3,000. 30. A company purchased office equipment for $25,000 and estimated a salvage value of $5,000 at the end of its 5-year useful life. The constant percentage to be applied against book value each year if the double-declining-balance method is used is a. 20 b. 25%. 40%. . d, 48. 31. A company purchased factory equipment for $100,000. It is estimated that the equipment will have a si0,000 salvage value at the end of its estimated 5-year useful life. If the company uses the double-declining-balance method of depreciation, the amount of annual depreciation recorded for the second year after purchase would be a. $40,000 b. $24, 000. c. $36,000. d. $21,600