7. It is not unusual for a company to use different depreciation methods for book and tax purposes. When this happens, the firm usually: A. uses an accelerated depreciation method for book purposes. B. uses an accelerated depreciation method for tax purposes. C. is trying to maximize its taxable income. D. is trying to minimize its book income.

10. Moped, Inc. purchased machinery at a cost of $22,000 on January 1, 2011. The expected useful life is 5 years and the asset is expected to have salvage value of $2,000. Moped depreciates its assets via the double-declining balance method. What is the firm's depreciation expense for the year ended December 31, 2011? A. $2,000 B. $4,400 C. $6,000 D. $8,800

What is the firm's depreciation expense for the year ended December 31, 2011? A. $2,000 B. $4,400 C. $6,000 D. $8,800

What is the accumulated depreciation for this asset on December 31, 2012? A. $4,400 B. $5,280 C. $8,800 D. $14,080

What is the firm's gain or loss if the machinery is sold for $11,000 on December 31, 2012? A. Gain of $4,000 B. Gain of $3,080 C. Loss of $600 D. Loss of $4,000