4. On April 1st, Year I, XYZ purchased a piece of machinery for $100,000. On that date, the company estimates that the asset had a useful life of 5 years, after which time it would have a salvage value of $10.000. The asset is to be depreciated on a straight-line basissIt is company policy to take half a year of depreciation in the year of acquisition and a half a year of depreciation in the year of sale (if the machinery is sold prematurely) During Year 4, XYZ decided to sell the machinery for $38,000 because it had decided that it needed more modern machinery. The sale would result in a: a)) Loss of $8,000. Maar 1- ) Gain of $8,000. c) Loss of $10,000. d) Gain of $10,000. cidoy On January 1, 2018, GHI Inc. purchased an asset for $50,000. The asset had a useful life of 5 years with no salvage value and was to be depreciated using the double-declining balance method. The amount of depreciation expense to be taken during 2019 would be: 5. a) $10,000. $8,000 c)S12,000. d) $18,000. 0000 xe Which of the following costs would NOT be capitalized with respect to non-current assets? 6. a Advertising expense. b) Installation costs related to machinery. c) Freight costs incurred by the purchaser. d) Legal fees incurred by a company to successfully defend its existing patents