3.Knight Company purchased a new machine on May 1, 2014 for $98,000. At the time of acquisition, the machine was estimated to have a useful life of ten years and an estimated salvage value of $8,000. The company has recorded monthly depreciation using the straight-line method. On March 1, 2023, the machine was sold for $12,000. What should be the loss recognized from the sale of the machine?

Select one:

a. No loss; a gain is realized

b. $1,800

c. $6,500

d. $5,000

e. $14,000

4.A company purchases a machine in 2016 and ignores the estimated salvage value in computing annual depreciation. The 2016 Net Income will be understated given the use of which method(s)?

Select one:

a. Both Straight-line method and Double-Declining-Balance method

b. Double-Declining-Balance method, but not Straight-line method

c. Straight-line method, but not Double-Declining-Balance method

d. Neither Straight-line method nor Double-Declining-Balance method

5.Frey, Inc. purchased a machine for $450,000 on January 2, 2017. The machine has an estimated useful life of 4 years and a salvage value of $50,000. The machine is being depreciated using the sum-of-the-years'-digits method. The December 31, 2018 asset balance, net of accumulated depreciation, should be:

Select one:

a. $290,000

b. $270,000

c. $170,000

d. $90,000

e. $120,000