5. Omni Corporation purchased a new vehicle on January 1, 20X1. The vehicle cost $100,000 has a five-year life, and a $20,000 residual value. Omni has a December 31 year-e depreciates the truck by depreciation expense during 20x4? recorded as the double-declining balance method, how much should be a S0 c. $8,640 6. Realistic Company purchased a new truck on January 1, 20X1. The truck cost $20,000, has a four-year life, and a $4,000 residual value. The company has a December 31 year-end. If Realistic Company depreciates the truck by the sum-of-the-years'-digits method, how much should Realistic report as the book value of the truck at the end of 20X3? a $1,600 b. $2,000 d. $14400 7. Cross Country Trucking Company recently replaced the oil filter on one of its cross country rigs. How should one account for this cost? a As a repair and maintenance expense. b As an increase in the cost of the truck et 8. On January 1, 20X2, Lynn Corporation purchased a machine for $100,000. Lynn paid shipping expenses of $1,000 as well as installation costs of $2,400. The machine was estimated to have a useful life of ten years and an estimated salvage value of $6,000. In January 20X3, additions costing $7,200 were made to the machine. These additions significantly improved the quality of output, but did not change the life or salvage value of the machine. If Lynn records depreciation under the straight-line method, depreciation expense for 20x3 is a $9,740 b $10 340 d. $11 140 9. A machine that cost $18,000, with a book value of $4,000, is sold for $3,400. Which of the following is true concerning the journal entry to record the sale? c. Loss on sale of machinery is credited for 14,000 10 Which of the following terms best relates to natural resources? d Accrual