A company buys a piece of equipment for $48,000. The equipment has a useful life of ten years. No residual value is expected at the end of the useful life. Using the double-declining-balance method, what is the company's depreciation expense in the first year of the equipment's useful life?

$9,600

$12,000

$4,800

$24,000

A machine is purchased on January 1, 2016, for $90,000. It is expected to have a useful life of five years and a residual value of $5,000. The company closes its books on December 31. Under the double-declining balance method, what is the total amount of depreciation to be expensed during the 2017?

$21,600

$22,000

$22,400

$34,000

Which method for estimating bad debts is generally considered to be the most accurate?

Percentage of credit sales

Allowance method

Specific account method

Aging of accounts receivable method

Urban Outsiders has a building that originally cost $375,000. The company expects to be able to sell the facility for $107,000 at the end of its useful life. The balance of the related Accumulated Depreciation account is $258,000. The residual value of the facility is:

$117,000.

$151,000.

$268,000.

$107,000.