5. A change in the estimated useful life of equipment requires L b. d. Page 2 A retroactive change in the amount of periodic depreciation recognized in That no change be made in the period depreciation so that depreciation previous years amounts are comparable over the life of the asset That the amount of periodic depreciation be changed in the current year and in future years. That income for the current year be increased. On October 1,303 Duncan Company places a new asset into service. The cost of the -asset is $12,000 with an estimated 5-year life and $3,000 salvage value at the end of its useful life. 6. What is the depreciation expense for 20f Duncan Company uses the straight- line method of depreciation? a. $450. b. $2,400. c. $600. d $1,200. 7. What is the book value of the plant asset on the December 31,30 alance sheet assuming that Duncan Company uses the double- declining-balance method of depreciation? $7,800. 3. b. $9,000. c. $10,800. d. $11,400. A company just started business made the following four inventory purchases in June June 1 150 units June 10 200 units June 15 200 units June 28 150 units $ 750 1,200 1,260 990 $4,200 A physical count of merchandise inventory on June 30 reveals that there are 300 units on hand. 8. Using the LIFO inventory method, the value of the ending inventory on June 30 is a. $1,650. 1.935 MARKING INSTRUCTIONS USE NO 2 PENCIL ONLY FILL BOX COMPLETELY CORRECT CA> C ERASE COMPLETELY TO CHANGE CORRECT TO USE SUBJECTIVE SCORE FEATURE: -Mark total possible subjective points CE Only one mark per line on key 163 points maximum EXAMBLERS NAME Falad Sh SUBJECT DATE