6.

Cutter Enterprises purchased equipment for $51,000 on January 1, 2018. The equipment is expected to have a five-year life and a residual value of $5,100. Using the double-declining balance method, depreciation for 2019 would be:

Multiple Choice

a. $20,400.

b. $11,016.

c. $12,240.

7.

Cutter Enterprises purchased equipment for $66,000 on January 1, 2018. The equipment is expected to have a five-year life and a residual value of $3,600. Using the double-declining balance method, the book value at December 31, 2019, would be:

Multiple Choice

a. $24,960.

b. $23,760.

c. $22,860.

d. $13,200.

8.

Cutter Enterprises purchased equipment for $78,000 on January 1, 2018. The equipment is expected to have a five-year life and a residual value of $8,700. Using the sum-of-the-years'-digits method, depreciation for 2018 and book value at December 31, 2018, would be: (Do not round depreciation rate per year)

Multiple Choice

a. $23,100 and $54,900 respectively.

b. $26,000 and $43,300 respectively.

c. $23,100 and $46,200 respectively.

d. $26,000 and $52,000 respectively.

9.

Cutter Enterprises purchased equipment for $69,000 on January 1, 2018. The equipment is expected to have a five-year life and a residual value of $7,200. Using the sum-of-the-years'-digits method, depreciation for 2019 and book value at December 31, 2019, would be: (Do not round depreciation rate per year)

Multiple Choice

a. $18,400 and $27,600 respectively.

b. $16,480 and $31,920 respectively.

c. $18,400 and $20,400 respectively.

d. $16,480 and $24,720 respectively.